#XAUUSD @ 1,920.29 Gold price is looking to extend gains above $1,920.00 decisively amid weakness in the US Dollar Index (DXY). (Pivot Orderbook analysis)

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• Gold price is looking to extend gains above $1,920.00 decisively amid weakness in the US Dollar Index (DXY).
• The Fed is expected to scale down the policy tightening pace amid declining inflation.
• S&P500 recorded a four-day winning streak, portraying a risk-on market mood.

The pair currently trades last at 1920.29.

The previous day high was 1921.96 while the previous day low was 1892.34. The daily 38.2% Fib levels comes at 1910.65, expected to provide support. Similarly, the daily 61.8% fib level is at 1903.65, expected to provide support.

Gold price (XAU/USD) has turned sideways after a juggernaut rally to near the critical resistance of $1,920.00 in the early Asian session on Monday. The precious metal witnessed substantial buying interest after surpassing the round-level resistance of $1,900 for the first time in eight months. Also, a sell-off in the US Dollar Index (DXY) supported a rally in the Gold price.

The risk profile remains upbeat as S&P500 recorded a four-day winning streak as the Federal Reserve (Fed) is set to trim its current policy tightening pace after a decent decline in December’s inflation report. However, the return generated by US Treasury bonds remains solid and gained to 3.50% despite the risk appetite theme. The US Dollar Index remained below 101.80 despite an improvement in United States Consumer Confidence data on Friday.

The University of Michigan released Consumer Confidence at 64.6 vs. the expectations of 60.5. The street is aware of the fact that retail demand has slowed down, therefore, the catalyst that has cheered consumers is the lower inflation led by lower gasoline prices.

Analysts at Wells Fargo see that the relief on the inflation front and wage growth is lifting spirits, but warn the still-sour buying conditions suggest the good vibes in this report may not translate into a spending surge.

Gold price has scaled above the 61.8% Fibonacci retracement (placed from March 8 high at $2,070.54 to September 28 low at $1,614.85) at $1,897.42. The 10-and 20-period Exponential Moving Averages (EMAs) at $1,881.49 and $1,852.64 respectively are upward-sloping, which adds to the upside filters.

Also, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which indicates that the upside momentum is active.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1920.76 at the time of writing. Pair opened at 1920.76 and is trading with a change of 0.0 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1836.21, 50 SMA 1793.04, 100 SMA @ 1734.08 and 200 SMA @ 1777.12.

The previous day high was 1921.96 while the previous day low was 1892.34. The daily 38.2% Fib levels comes at 1910.65, expected to provide support. Similarly, the daily 61.8% fib level is at 1903.65, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1901.41, 1882.07, 1871.79
• Pivot resistance is noted at 1931.03, 1941.31, 1960.65

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