#XAUUSD @ 1,869.05 Gold price dives and eyes a break to new weekly lows below $1860.44. (Pivot Orderbook analysis)

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• Gold price dives and eyes a break to new weekly lows below $1860.44.
• Downbeat economic data in the United States spurred Gold’s jump to its daily high at $1890.21.
• Gold Price Forecast: Short term, is downward biased, and it might test $1850.00.

The pair currently trades last at 1869.05.

The previous day high was 1886.48 while the previous day low was 1867.45. The daily 38.2% Fib levels comes at 1879.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1874.72, expected to provide resistance.

Gold prices remained downward pressured on Thursday, even though the US Dollar (USD) is printing losses of 0.48%. Meanwhile, US Treasury bond yields extended their losses from around weekly highs at 3.692% to 3.592%, a tailwind for Gold prices. Despite all that, the XAU/USD is trading below its opening price, exchanging hands at 1867.54, a troy ounce.

US equities continue to rise throughout the North American session. XAU/USD has failed to gain traction after hitting a daily high of $1890.21, shy of the 20-day Exponential Moving Average (EMA) at $1893.07.

Economic data from the United States (US) showed that unemployment claims rose above estimates, indicating a slight shift in the US labor market. Initial Jobless Claims for the week ending February 4 increased by 195K, above forecasts of 190K, as reported by the Department of Labor (DoL). Albeit high-tech companies had announced a series of layoffs, the US economy added more than 500K in January, as revealed by the last US Nonfarm Payrolls report.

Elsewhere, a slew of Federal Reserve officials added that more rate hikes are needed as the US central bank battles to curb high inflation in the United States. The New York Fed President John Williams said, “seems a very reasonable view of what we’ll need to do this year to get the supply and demand imbalances down.”

Echoing some of his comments was Lisa D. Cook. She said that moving in smaller rate increases “is appropriate” as the central bank asses the effects of cumulative tightening. Later, Minnesota’s Fed President Neil Kashkari added that he believes the Federal Funds Rate (FFR) would need to go as high as 5.4%, according to his projections.

In the meantime, the US Dollar Index, a gauge of the buck’s value against a basket of six currencies, edges down by 0.31%, at 103.147, failed to bolster Gold prices. The US 10-year Treasury bond yield stages a recovery after dipping to its daily low of 3.575% and climbing to 3.609%.

XAU/USD remains downward pressured, eyeing to extend its losses below Monday’s low of $1860.44, which is also the weekly low. An extension below would set Gold’s to test the 50-day Exponential Moving Average (EMA) around $1856.55. Once broken, XAU/USD’s bearish continuation would extend to the December 27 daily high-turned-support at $1833.29, followed by the 100-day EMA at $1816.20.

As an alternate scenario, XAU/USD’s resistance lies at the 20-day EMA at 1892.41, ahead of the psychological $1900 mark.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1868.49 at the time of writing. Pair opened at 1875.32 and is trading with a change of -0.36 % .

The pair is trading below its 20 Daily moving average @ 1913.77, above its 50 Daily moving average @ 1853.15 , above its 100 Daily moving average @ 1772.46 and above its 200 Daily moving average @ 1775.99

The previous day high was 1886.48 while the previous day low was 1867.45. The daily 38.2% Fib levels comes at 1879.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1874.72, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1866.35, 1857.39, 1847.32
• Pivot resistance is noted at 1885.38, 1895.45, 1904.41

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