#XAUUSD @ 1,838.73 Gold price regains positive traction on Friday and reverses a part of the overnight losses. (Pivot Orderbook analysis)

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• Gold price regains positive traction on Friday and reverses a part of the overnight losses.
• Some follow-through buying around the USD should keep a lid on the non-yielding metal.
• Traders keenly await the release of the US monthly employment details, or the NFP report.

The pair currently trades last at 1838.73.

The previous day high was 1859.11 while the previous day low was 1825.08. The daily 38.2% Fib levels comes at 1838.08, expected to provide support. Similarly, the daily 61.8% fib level is at 1846.11, expected to provide resistance.

Gold price attracts some dip-buying on the last day of the week and stalls its retracement slide from the highest level since June 2022, around the $1,865 area touched on Wednesday. The XAU/USD maintains its bid tone through the early European session and is currently placed near the top end of the daily range, just below the $1,840 level.

The intraday uptick in Gold price could be attributed to some repositioning trade ahead of the release of the closely-watched US monthly jobs data. The popularly known NFP report will play a key role in influencing the Fed’s rate hike path and help determine the next leg of a directional move for the non-yielding yellow metal. In the meantime, a strong follow-through buying around the US Dollar could keep a lid on any meaningful upside for the Dollar-denominated commodity.

The USD continues to draw support from Thursday’s better-than-expected US macro data, which pointed to a resilient US labour market and could allow the Federal Reserve to stick to its aggressive rate hike path. In fact, Automatic Data Processing (ADP) reported that the US private sector employers added 235K jobs in December against consensus estimates for a reading of 150K. Furthermore, Initial Jobless Claims unexpectedly declined to 204K last week.

This comes on the back of a hawkish tone from the minutes of the Federal Open Market Committee (FOMC) December meeting, showing that policymakers were set to keep interest rates higher for longer. Moreover, Federal Reserve officials reiterated on Thursday that they were still focused on bringing inflation back to the 2% target. Heading into the key data risk, the Fed’s hawkish outlook should contribute to capping Gold price and warrants caution for bullish traders.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1837.54 at the time of writing. Pair opened at 1833.21 and is trading with a change of 0.24 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1808.7, 50 SMA 1764.24, 100 SMA @ 1725.76 and 200 SMA @ 1778.45.

The previous day high was 1859.11 while the previous day low was 1825.08. The daily 38.2% Fib levels comes at 1838.08, expected to provide support. Similarly, the daily 61.8% fib level is at 1846.11, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1819.16, 1805.1, 1785.13
• Pivot resistance is noted at 1853.19, 1873.16, 1887.22

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