#XAUUSD @ 1,929.71 Gold price catches fresh bids on Friday and steadily climbs back closer to a multi-week top. (Pivot Orderbook analysis)

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• Gold price catches fresh bids on Friday and steadily climbs back closer to a multi-week top.
• Concerns about a full-blown global banking crisis seem to benefit the safe-haven commodity.
• Bets for a less aggressive Federal Reserve, a weaker US Dollar also lend support to the metal.

The pair currently trades last at 1929.71.

The previous day high was 1933.51 while the previous day low was 1907.56. The daily 38.2% Fib levels comes at 1923.6, expected to provide support. Similarly, the daily 61.8% fib level is at 1917.47, expected to provide support.

Gold price regains some positive traction following the previous day’s good two-way price moves and maintains its bid tone through the early European session on Friday. The XAU/USD is currently placed just above the $1,930 level, up over 0.60% for the day, and remains well within the striking distance of a six-week high touched on Monday.

Despite multi-billion-dollar lifelines for troubled banks in the United States (US) and European, concerns about widespread contagion continue to drive some haven flows and benefit Gold price. It is worth mentioning that large US banks came to the rescue of troubled First Republic Bank and injected $30 billion into the California, San Francisco-based lender on Thursday. This followed Credit Suisse’s announcement that it will exercise an option to borrow up to $54 billion from the Swiss National Bank (SNB) to shore up liquidity. The developments, however, fail to boost investors’ confidence or ease fears of a full-blown global banking crisis, which is evident from the prevalent cautious market mood.

Furthermore, last week’s collapse of two mid-size US banks – Silicon Valley Bank and Signature Bank – forced traders to scale back expectations of more aggressive interest rate hikes by the Federal Reserve (Fed). In fact, the markets are now pricing in a nearly 90% chance of a smaller 25 bps lift-off at the upcoming Federal Open Market Committee (FOMC) meeting on March 21-22. This, in turn, leads to a modest downtick in the US Treasury bond yields and lends additional support to the non-yielding Gold price. Meanwhile, expectations for a less hawkish Fed prompt fresh selling around the US Dollar, which turns out to be another factor acting as a tailwind for the US Dollar-denominated commodity.

The aforementioned supportive fundamental backdrop suggests that the path of least resistance for Gold price is to the upside. Nevertheless, the XAU/USD remains on track to register its biggest weekly gain since mid-November and seems poised to prolong the recent appreciating move witnessed over the past two weeks or so. Market participants now look to the release of the Michigan US Consumer Sentiment Index for some impetus later during the early North American session on Friday. The focus, however, will remain on the two-day FOMC meeting, starting next Tuesday.

From a technical perspective, any subsequent move beyond the $1,937-$1,938 region, or the weekly swing high, is likely to confront some resistance near the multi-month top, around the $1,959-$1,960 area touched in February. Some follow-through buying will be seen as a fresh trigger for bullish traders and allow Gold price to aim towards reclaiming the $2,000 psychological mark.

On the flip side, immediate support is pegged near the $1,920-$1,918 horizontal zone, ahead of the overnight swing low, around the $1,908-$1,907 region. This is followed by the $1,900 round figure, which if broken might prompt some technical selling and drag the XAU/USD to the $1,886-$1,885 area en route to the $1,872-$1,871 support, or the weekly low set on Monday.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1932.44 at the time of writing. Pair opened at 1919.51 and is trading with a change of 0.67 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1849.04, 50 SMA 1877.18, 100 SMA @ 1820.71 and 200 SMA @ 1776.37.

The previous day high was 1933.51 while the previous day low was 1907.56. The daily 38.2% Fib levels comes at 1923.6, expected to provide support. Similarly, the daily 61.8% fib level is at 1917.47, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1906.88, 1894.24, 1880.93
• Pivot resistance is noted at 1932.83, 1946.14, 1958.78

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