#XAUUSD @ 1,982.67 reaches historic levels as investors seek safe-haven assets. (Pivot Orderbook analysis)

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• XAU/USD reaches historic levels as investors seek safe-haven assets.
• Gold price surge amid falling US Treasury yields and global banking turmoil.
• Is the end of Fed’s hiking cycle near? Gold prices await a crucial decision.

The pair currently trades last at 1982.67.

The previous day high was 2009.88 while the previous day low was 1965.92. The daily 38.2% Fib levels comes at 1982.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1993.09, expected to provide resistance.

Gold prices reached a fresh yearly high on Monday this week, with XAU/USD hitting the $2,000 mark for only the third time in recorded history; the last time was during the COVID era.

The robust bull run began from the March low of around $1,800, and gold prices have not looked back since. Gold prices have a strong inverse correlation with US Treasury (UST) bond yields, which experienced a notable decline in March.

The global banking turmoil has forced investors to reconsider their outlook on surging borrowing costs. Amid this uncertainty, investors chose to seek safety in US Treasury bonds, causing yields to fall.

Some speculations suggest we may have seen the peak in US Treasury yields. Two driving forces could be behind this exponential Gold price surge: Gold’s role as a safe haven during adversity and falling UST yields.

Despite gold prices hovering around the $2,000 mark, it’s too early to claim any top. According to the CME FedWatch tool, markets are pricing in a 26.2% chance that the Fed will stand pat at the end of its March 21-22 meeting, with around a 75% chance of a 25 basis point (bps) hike.

It’s doubtful for the Fed to terminate the current hiking cycle with a surprise. However, one should remember that the Fed has made mid-cycle adjustments in the past. Given that most central banks are nearing their peak in the hiking cycle, it’s not impossible that the Fed could signal the end of the cycle.

On the other hand, inflation remains above the 2% Fed’s target, so it would be premature for the Fed to pause or end the hiking cycle.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1980.82 at the time of writing. Pair opened at 1979.15 and is trading with a change of 0.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1863.3, 50 SMA 1881.78, 100 SMA @ 1827.61 and 200 SMA @ 1777.75.

The previous day high was 2009.88 while the previous day low was 1965.92. The daily 38.2% Fib levels comes at 1982.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1993.09, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1960.09, 1941.02, 1916.13
• Pivot resistance is noted at 2004.05, 2028.94, 2048.01

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