#XAUUSD @ 2,007.74 Gold price meets with a fresh supply on Thursday, though the downside remains limited (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• Gold price meets with a fresh supply on Thursday, though the downside remains limited
• Hawkish Federal Reserve expectations drive some flow away from the non-yielding metal.
• Looming recession fears lend support to the XAU/USD amid a modest US Dollar weakness.

The pair currently trades last at 2007.74.

The previous day high was 2022.18 while the previous day low was 2007.36. The daily 38.2% Fib levels comes at 2016.52, expected to provide resistance. Similarly, the daily 61.8% fib level is at 2013.02, expected to provide resistance.

Gold price struggles to capitalize on the previous day’s modest uptick and comes under some renewed selling pressure on Tuesday. The XAU/USD, however, manages to bounce off the daily low and hold above the $2,000 psychological mark through the first half of the European session.

The market sentiment remains fragile in the wake of a standoff to raise the federal government’s borrowing limit, which, along with weaker-than-expected Chinese macro data, fuel recession fears and benefit the safe-haven Gold price. In fact, US President Joe Biden expressed confidence that a deal could be done in time ahead of an expected meeting with congressional leaders later this Tuesday. Republican House of Representatives Speaker Kevin McCarthy, however, said the two sides were still far apart. Apart from this, signs that the post-COVID recovery in China – the world’s second-largest economy – is losing steam temper investors’ appetite for perceived riskier assets.

The anti-risk flow, along with concerns about the US debt ceiling, trigger a fresh leg down in the US Treasury bond yields, which is seen weighing on the US Dollar (USD) for the second successive day. A weaker Greenback lends additional support to the US Dollar-denominated Gold price. However, fresh speculations that the Federal Reserve (Fed) will stick to its hawkish stance in the wake of a rise in consumer inflation expectations contribute to the offered tone surrounding the non-yielding yellow metal. it is worth recalling that the Michigan survey showed last Friday that consumers see prices over the next five years climbing at an annual rate of 3.2% – the highest level since 2011.

Adding to this, a slew of Fed officials warned on Monday that interest rates could still rise further amid relatively high inflation and a robust labor market. This could act as a tailwind for the US bond yields and the USD, supporting prospects for a further near-term downside for Gold price. Market participants now look forward to the US economic docket, featuring the release of monthly Retail Sales figures and industrial production data, due later during the early North American session. Apart from this, Fedspeaks could produce short-term trading opportunities around the XAU/USD. The focus, however, will remain glued to Fed Chair Jerome Powell’s speech on Friday.

From a technical perspective, acceptance below the $2,000 mark will expose the $1,980 horizontal zone. This is closely followed by support near the $1,970 region, which if broken decisively might shift the near-term bias in favour of bearish traders and make the Gold price vulnerable to prolong its recent corrective pullback from the all-time high, around the $2,078-$2,079 area touched earlier this month. On the flip side, the $2,020-$2,021 region now seems to have emerged as an immediate hurdle. The next relevant resistance is pegged near the $2,035-$2,040 region. Some follow-through should allow Gold to climb back towards the all-time high and extend the momentum further towards conquering the $2,100 round-figure mark.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 2008.47 at the time of writing. Pair opened at 2016.46 and is trading with a change of -0.4 % .

The pair is trading below its 20 Daily moving average @ 2008.72, above its 50 Daily moving average @ 1975.65 , above its 100 Daily moving average @ 1922.14 and above its 200 Daily moving average @ 1822.15

The previous day high was 2022.18 while the previous day low was 2007.36. The daily 38.2% Fib levels comes at 2016.52, expected to provide resistance. Similarly, the daily 61.8% fib level is at 2013.02, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 2008.49, 2000.51, 1993.67
• Pivot resistance is noted at 2023.31, 2030.15, 2038.13

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group