#XAUUSD @ 2,025.94 Gold price scales higher for the third successive day and moves back closer to the YTD peak. (Pivot Orderbook analysis)

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• Gold price scales higher for the third successive day and moves back closer to the YTD peak.
• Expectations for an imminent Fed rate hike pause weigh on the US Dollar and lend support.
• Looming recession risks provide an additional boost to the safe-haven metal and favour bulls.

The pair currently trades last at 2025.94.

The previous day high was 2028.41 while the previous day low was 2001.45. The daily 38.2% Fib levels comes at 2018.11, expected to provide support. Similarly, the daily 61.8% fib level is at 2011.75, expected to provide support.

Gold price gains positive traction for the third successive day on Thursday and extends its steady intraday ascent through the first half of the European session. The XAU/USD currently trades around the $2,030 region, just below the YTD peak touched last week and seems poised to build on its recent strong gains recorded over the past month or so.

The latest consumer inflation figures from the United States (USD) released on Wednesday reaffirmed market expectations that the Federal Reserve (Fed) may soon be finished raising interest rates. Adding to this, the March Federal Open Market Committee (FOMC) showed that several policymakers considered pausing interest rate increases after the failure of two regional banks. This leads to a further decline in the US Treasury bond yields and is seen as a key factor benefitting the non-yielding Gold price.

Meanwhile, growing acceptance that the Fed will pause its monetary tightening after hiking one last time next month and possibly start cutting rates during the second half of the year continues to weigh on the US Dollar (USD). In fact, the USD Index, which tracks the Greenback against a basket of currencies, drops to its lowest level since early February. This, along with worries about a deeper global economic downturn, contributes to the bid tone surrounding the US Dollar-denominated Gold price.

It is worth recalling that the International Monetary Fund (IMF) trimmed its 2023 global growth outlook on Tuesday, citing the impact of higher interest rates. Furthermore, the mixed Chinese trade data released earlier this Thursday raises concerns that the post-COVID recovery in the world’s second-largest economy is losing steam. This is seen as another factor driving flows towards the safe-haven Gold price and supports prospects for an extension of the recent well-established short-term bullish trajectory.

The aforementioned fundamental backdrop suggests that the path of least resistance for the XAU/USD is to the upside and any meaningful dip could be seen as a buying opportunity. Market participants now look forward to the US economic docket, featuring the release of the Producer Price Index (PPI) and the usual Weekly Initial Jobless Claims. The data might influence the USD price dynamics and provide some impetus to Gold price later during the early North American session.

From a technical perspective, some follow-through buying beyond the $2,032 area, or the YTD peak, will be seen as a fresh trigger for bullish traders. The gold price might then accelerate the momentum towards the $2,048-$2,050 intermediate resistance en route to the all-time high, around the $2,070-$2,075 region.

On the flip side, the daily swing low, around the $2,014-$2,013 zone, could act as a support and protect the immediate downside. Any subsequent fall is likely to attract fresh buyers near the $2,000 psychological mark. This should help limit losses for Gold price near the $1,990-$1,980 horizontal support.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 2027.53 at the time of writing. Pair opened at 2014.87 and is trading with a change of 0.63 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1978.81, 50 SMA 1903.48, 100 SMA @ 1870.08 and 200 SMA @ 1790.87.

The previous day high was 2028.41 while the previous day low was 2001.45. The daily 38.2% Fib levels comes at 2018.11, expected to provide support. Similarly, the daily 61.8% fib level is at 2011.75, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 2001.41, 1987.95, 1974.45
• Pivot resistance is noted at 2028.37, 2041.87, 2055.33

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