#XAUUSD @ 1713.61 Gold price is expected to drop to near $1,700.00 on a breakdown of Ascending Triangle. (Pivot Orderbook analysis)

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• Gold price is expected to drop to near $1,700.00 on a breakdown of Ascending Triangle.
• Lower consensus for US CPI is resulting in a sell-off in the precious metal.
• The headline US CPI is seen lower at 8.1% vs. 8.5% reported earlier.

The pair currently trades last at 1713.61.

The previous day high was 1729.57 while the previous day low was 1708.45. The daily 38.2% Fib levels comes at 1721.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1716.52, expected to provide resistance.

Gold price (XAU/USD) is witnessing a steep fall after refreshing intraday’s low at $1,712.96. The precious metal is facing a sell-off heat to lower consensus for the US Consumer Price Index (CPI). The yellow metal is expected to continue its vulnerable performance and will decline towards the psychological support of $1,700.00.

As per the market estimates, the US inflation will land at 8.1%, 40 basis points lower than the prior release. The households in the US economy are facing the headwinds of soaring price pressures for a prolonged time. They are forced higher payouts on similar quantities purchased. As gasoline prices have fallen dramatically and the rising interest rates by the Federal Reserve (Fed) have started doing their job perfectly now, price pressures are experiencing exhaustion signals.

It is worth noting that gold is considered an inflation-hedged asset and a lower consensus for inflationary pressures is forcing the market participants to ditch the yellow metal.

Meanwhile, the US dollar index (DXY) has turned sideways as a lower consensus for the headline CPI figure will force the Fed policymakers to trim their hawkish tone.

Gold price has dropped below the Ascending Triangle pattern whose upward-sloping trendline is placed from Wednesday’s low at $1,694.31 while the horizontal resistance is August 31 high at $1,726.62. The 20-and 50-period Exponential Moving Averages (EMAs) are overlapping to each other, which indicates a sideways move ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which supports a consolidation ahead.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1713.08 at the time of writing. Pair opened at 1716.82 and is trading with a change of -0.22 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1734.78, 50 SMA 1743.86, 100 SMA @ 1795.67 and 200 SMA @ 1833.55.

The previous day high was 1729.57 while the previous day low was 1708.45. The daily 38.2% Fib levels comes at 1721.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1716.52, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1706.99, 1697.16, 1685.87
• Pivot resistance is noted at 1728.11, 1739.4, 1749.23

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