#XAUUSD @ 2,039.02 Gold price extends the overnight pullback from an all-time high and continues losing ground on Friday. (Pivot Orderbook analysis)

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• Gold price extends the overnight pullback from an all-time high and continues losing ground on Friday.
• Rebounding US bond yields drives flows away from the XAU/USD ahead of the key US NFP report.
• The Federal Reserve’s less hawkish outlook and a softer US Dollar should help limit further losses.

The pair currently trades last at 2039.02.

The previous day high was 2079.76 while the previous day low was 2030.45. The daily 38.2% Fib levels comes at 2060.92, expected to provide resistance. Similarly, the daily 61.8% fib level is at 2049.29, expected to provide resistance.

Gold price comes under some selling pressure on the last day of the week and retreats further from the all-time high, around the $2,078-$2,079 region touched on Thursday. The XAU/USD extends its descent through the first half of the European session and drops to the $2,037 area, or a fresh daily low in the last hour.

A sharp intraday rise in the United States (US) government bond yields turns out to be a key factor driving flows away from the non-yielding Gold prices. This, along with some repositioning trade ahead of the closely-watched US monthly jobs data, exerts some pressure on the XAU/USD. The popularly known Nonfarm Payrolls (NFP) report is due for release later during the early North American session and is expected to show that the US economy added 179K jobs in April, down from 236K in the previous month. The jobless rate, meanwhile, is anticipated to hold steady at 3.5% during the reported month. Apart from this, investors will take cues from Average Hourly Earnings for fresh insight into the possibility of any further rise in inflationary pressures, which, in turn, should provide some meaningful impetus to the metal.

In the meantime, concerns about the US banking sector and the Federal Reserve’s (Fed) less hawkish outlook should help limit the downside for Gold price. Investors remain worried about a full-blown banking crisis in the US and that regional lender PacWest Bancorp could be the next potential domino to fall. The US central bank, meanwhile, outlined a more stringent and data-driven approach to hiking rates further. Moreover, Fed Chair Jerome Powell earlier this week signalled that the central bank was close to hitting the terminal rate. Investors took this as a sign that the central bank could pause its year-long rate-hike cycle sooner rather than later. This, along with the concerns over the US debt ceiling, attracts fresh sellers around the US Dollar (USD) and could further lend some support to the US Dollar-denominated commodity.

Nevertheless, Gold price, for now, seems to have snapped a three-day winning streak, though remains on track to register strong weekly gains of nearly 3%. Moreover, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through selling before confirming that a near-term top has been formed and positioning for any meaningful corrective decline.

From a technical perspective, the overnight swing low, around the $2,030 level, might protect the immediate downside ahead of the $2,020 region and the $2,012-$2,010 resistance breakpoint, now turned support. This is followed by the $2,000 psychological mark, which should act as a pivotal point. Failure to defend the said support level might prompt some technical selling and drag the Gold price back towards the $1,980-$1,970 strong horizontal support.

On the flip side, the $2,050-$2,053 area now seems to have emerged as an immediate hurdle. Some follow-through buying has the potential to lift the Gold price back towards the all-time high, around the $2,078 region touched on Thursday. The momentum could get extended further and allow bullish traders to aim to capture the $2,100 round-figure mark.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 2038.29 at the time of writing. Pair opened at 2050.24 and is trading with a change of -0.58 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 2004.35, 50 SMA 1948.9, 100 SMA @ 1906.48 and 200 SMA @ 1813.36.

The previous day high was 2079.76 while the previous day low was 2030.45. The daily 38.2% Fib levels comes at 2060.92, expected to provide resistance. Similarly, the daily 61.8% fib level is at 2049.29, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 2027.21, 2004.17, 1977.9
• Pivot resistance is noted at 2076.52, 2102.79, 2125.83

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