#XAUUSD @ 2,001.13 Gold price attracts some dip-buying on Thursday amid subdued US Dollar price action. (Pivot Orderbook analysis)
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- Gold price attracts some dip-buying on Thursday amid subdued US Dollar price action.
- Rising US bond yields could limit the USD losses and act as a headwind for the XAU/USD.
- The prospects for further rate hikes by major central banks might contribute to cap gains.
The pair currently trades last at 2001.13.
The previous day high was 2009.41 while the previous day low was 1983.4. The daily 38.2% Fib levels comes at 1993.34, expected to provide support. Similarly, the daily 61.8% fib level is at 1999.47, expected to provide support.
Gold price regains some positive traction on Wednesday and builds on its steady intraday ascent through the early European session. The XAU/USD retakes the $2,000 psychological mark in the last hour and moves well within the striking distance of the weekly high touched the previous day.
The US Dollar (USD) struggles to capitalize on the overnight bounce from a nearly two-week low and remains on the defensive for the second successive day, which, in turn, is seen lending support to the Gold price. Concerns about banking contagion risks in the United States (US) resurfaced after the First Republic Bank reported more than $100 billion in customer withdrawals during the first quarter. This, along with the debt ceiling standoff and fears that the US economy is heading towards recession, fuel speculations about an imminent rate cut by the Federal Reserve (Fed) later this year and continue to weigh on the buck.
The US central bank, however, is still expected to hike interest rates by 25 basis points (bps) at the next Federal Open Market Committee (FOMC) policy meeting in May. This remains supportive of a further rise in the US Treasury bond yields, which acts as a tailwind for the Greenback. Furthermore, the markets have been betting for more rate hikes by the European Central Bank (ECB) in the coming months and another 25 bps lift-off by the Bank of England (BoE) in May. This, in turn, might hold back traders from placing aggressive bullish bets around the non-yielding Gold price and keep a lid on any meaningful upside.
Apart from this, a slight recovery in the global risk sentiment – as depicted by a stable performance around the equity markets – could further contribute to capping gains for the safe-haven precious metal, at least for the time being. Traders also seem reluctant and move to the sidelines ahead of the release of the Advance first-quarter US Gross domestic product (GDP) report, due later during the early North American session. The data, along with the US bond yields, will play a key role in influencing the USD price dynamics and allow traders to grab short-term opportunities around the US Dollar-denominated Gold price.
From a technical perspective, any subsequent move up is likely to confront some resistance near the $2,010 supply zone ahead of the $2,020 horizontal level. A sustained strength beyond the latter might trigger a short-covering move towards the $2,040 area, above which Gold price could climb to challenge the YTD peak, around the $2,047-$2,049 region touched earlier this month.
On the flip side, weakness below the $1,990-$1,988 immediate support could attract some buyers near the $1,980 level, which should help limit the downside near the $1,969 horizontal zone. Some follow-through selling will be seen as a fresh trigger for bearish traders and make the Gold price vulnerable to test the next relevant support near the $1,956-$1,955 area. The XAU/USD could eventually drop to the monthly low around the $1,950 region.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 2002.11 at the time of writing. Pair opened at 1989.0 and is trading with a change of 0.66 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 2002.11 |
| 1 | Today Daily Change | 13.11 |
| 2 | Today Daily Change % | 0.66 |
| 3 | Today daily open | 1989.00 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1998.04, 50 SMA 1927.93, 100 SMA @ 1893.5 and 200 SMA @ 1804.6.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1998.04 |
| 1 | Daily SMA50 | 1927.93 |
| 2 | Daily SMA100 | 1893.50 |
| 3 | Daily SMA200 | 1804.60 |
The previous day high was 2009.41 while the previous day low was 1983.4. The daily 38.2% Fib levels comes at 1993.34, expected to provide support. Similarly, the daily 61.8% fib level is at 1999.47, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1978.46, 1967.93, 1952.45
- Pivot resistance is noted at 2004.47, 2019.95, 2030.48
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 2009.41 |
| Previous Daily Low | 1983.40 |
| Previous Weekly High | 2015.13 |
| Previous Weekly Low | 1969.26 |
| Previous Monthly High | 2009.88 |
| Previous Monthly Low | 1809.46 |
| Daily Fibonacci 38.2% | 1993.34 |
| Daily Fibonacci 61.8% | 1999.47 |
| Daily Pivot Point S1 | 1978.46 |
| Daily Pivot Point S2 | 1967.93 |
| Daily Pivot Point S3 | 1952.45 |
| Daily Pivot Point R1 | 2004.47 |
| Daily Pivot Point R2 | 2019.95 |
| Daily Pivot Point R3 | 2030.48 |
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