#XAUUSD @ 1,777.06 Gold price remains pressured as sellers poke short-term key support line., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• Gold price remains pressured as sellers poke short-term key support line.
• US Dollar recovery triggered XAU/USD’s biggest daily fall in three months.
• Fears of higher interest rates for longer weigh on sentiment and Gold price.
• Preliminary PMIs for December will be important for fresh impulse.

The pair currently trades last at 1777.06.

The previous day high was 1814.19 while the previous day low was 1795.61. The daily 38.2% Fib levels comes at 1802.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1807.09, expected to provide resistance.

Gold price (XAU/USD) holds lower ground near $1,777-76 support during early Friday morning in Asia. In doing so, the precious metal remains on the seller’s radar ahead of the key PMIs data from the UK, Europe and the US for December.

That said, a broad gamut of 0.50% rate hikes by the US Federal Reserve, Bank of England, Swiss National and the European Central Bank raised fears of higher rates across the board and weighed on the market sentiment, as well as the Gold price. Also challenging the risk appetite and favoring the XAU/USD bears were the central banks’ concerns suggesting their readiness to the higher rates for longer, as well as sour forecasts surrounding inflation and growth.

It should be noted that the risk-aversion drowned the Wall Street benchmarks and favored the US Treasury bond yields, which in turn allowed the US Dollar Index (DXY) to print the biggest daily gain in 10 weeks.

In doing so, the greenback’s gauge versus the six major currencies paid little heed to the mixed data at home as the US Retail Sales flashed -0.6% MoM figure in November versus 0.1% expected and 1.3% prior. Further, manufacturing survey details from Philadelphia Fed and New York Fed came in disappointing for the said month whereas Industrial Production eased in November and the Jobless Claims also dropped for the week ended on December 09.

Elsewhere, downbeat statistics from China, one of the world’s key Gold consumers, also drowned the XAU/USD prices. China’s Retail Sales slumped to -5.9% in November versus -3.6% expected and -0.5% prior while Industrial Production came in at 2.2% compared to 3.3% market forecasts and 5.0% previous readings.

To sum up, renewed fears of higher rates and recession weigh on the Gold price while preliminary readings of the December month PMIs for the UK, Europe and the US will be crucial to determine the metal’s further downside.

Gold price remains pressured as sellers poke a five-week-old ascending trend line. The bearish bias recently gained support from a downside break of the 100-SMA, around $1,780 by the press time.

Also keeping the XAU/USD sellers hopeful are the bearish MACD signals and the RSI (14).

That said, the Gold bears need volition from the $1,775 immediate support to aim for the 200-SMA level surrounding $1,750.

Following that, the early November swing low near $1,700 could lure Gold sellers.

Alternatively, recovery moves need to stay beyond the 100-SMA level surrounding $1,780 to convince intraday buyers. Even so, an upward-sloping resistance line from early November, close to $1,825, could challenge the Gold buyers.

Overall, Gold is likely to witness further downside but the $1,775 level probes bears.

Trend: Further downside expected

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1776.52 at the time of writing. Pair opened at 1806.61 and is trading with a change of -1.67% % .

The pair is trading above its 20 Daily moving average @ 1770.93, above its 50 Daily moving average @ 1716.12 , above its 100 Daily moving average @ 1720.25 and below its 200 Daily moving average @ 1789.16

The previous day high was 1814.19 while the previous day low was 1795.61. The daily 38.2% Fib levels comes at 1802.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1807.09, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1796.75, 1786.89, 1778.17
• Pivot resistance is noted at 1815.33, 1824.05, 1833.91

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