#XAUUSD @ 2,044.98 Gold price is aiming to capture the critical resistance of $2,050.00 as USD Index is eyeing more downside. (Pivot Orderbook analysis)

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• Gold price is aiming to capture the critical resistance of $2,050.00 as USD Index is eyeing more downside.
• Reduced borrowing by US banks from the Fed is advocating further slowdown in the US economy.
• Gold price is on the verge of delivering a breakout of the Rising Channel pattern.

The pair currently trades last at 2044.98.

The previous day high was 2048.75 while the previous day low was 2013.8. The daily 38.2% Fib levels comes at 2035.4, expected to provide support. Similarly, the daily 61.8% fib level is at 2027.15, expected to provide support.

Gold price (XAU/USD) is gathering strength to capture the critical resistance of $2,050.00 in the Asian session. The precious metal is looking to resume its upside journey after mild exhaustion in the upside momentum.

S&P500 futures are showing choppy moves in the Asian session after witnessing stellar buying on Thursday, portraying a risk appetite theme underpinned by the market participants. The US Dollar Index (DXY) has refreshed its 11-month low at 100.80 and is eyeing more weakness as investors are anticipating that the Federal Reserve (Fed) will look for pausing rate hikes after May monetary policy meeting.

Bloomberg reported that United States commercial banks reduced their borrowings from two Federal Reserve backstop lending facilities for a fourth straight week as liquidity constraints continue to ease following the collapse of Silicon Valley Bank last month. Lower credit disposal due to tight credit conditions could slow down the US economy, which might ease inflationary pressures sooner and force Fed chair Jerome Powell to wrap up the policy-tightening spell sooner.

On Friday, a power-pack action is expected from the USD Index amid the release of the US Retail Sales data. According to the consensus, the economic data will contract by 0.4%. The retail demand is likely to continue the pace of contraction as shown in February as US labor market conditions are cooling down.

Gold price is auctioning in a Rising Channel chart pattern on a two-hour scale in which every pullback is capitalized for building fresh longs by the market participants. The yellow metal is consolidating near the breakout region of the aforementioned chart pattern.

Advancing 20-period Exponential Moving Average (EMA) at $2,031.00 is favoring more upside for Gold bulls.

The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, indicating that the upside momentum is already active.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 2045.16 at the time of writing. Pair opened at 2040.0 and is trading with a change of 0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1984.88, 50 SMA 1905.21, 100 SMA @ 1872.96 and 200 SMA @ 1792.38.

The previous day high was 2048.75 while the previous day low was 2013.8. The daily 38.2% Fib levels comes at 2035.4, expected to provide support. Similarly, the daily 61.8% fib level is at 2027.15, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 2019.62, 1999.23, 1984.67
• Pivot resistance is noted at 2054.57, 2069.13, 2089.52

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