#XAUUSD @ 1696.94 Gold price is attempting a bullish reversal after refreshing its weekly low at $1,693.67. (Pivot Orderbook analysis)

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• Gold price is attempting a bullish reversal after refreshing its weekly low at $1,693.67.
• The structure of slowing down the pace of hiking interest rates by the Fed is far from over.
• Going forward, the US Retail Sales data will be of utmost importance.

The pair currently trades last at 1696.94.

The previous day high was 1731.87 while the previous day low was 1697.09. The daily 38.2% Fib levels comes at 1710.38, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1718.58, expected to provide resistance.

Gold price (XAU/USD) has sensed a buying interest after printing a fresh weekly low of $1,693.67 in the late New York session. The precious metal is required to initially recapture the psychological resistance of $1,700.00 to establish a rebound base and a follow-up recovery extension will be set on autopilot mode. The yellow metal has attempted a recovery as the US dollar index (DXY) is displaying exhaustion signals after a juggernaut rally.

Earlier, gold prices witnessed a bloodbath after a surprise rebound in the US inflation rate. As consensus for the inflation rate was meaningfully lower led by a fall in gasoline prices, investors had started betting that the pace of hiking interest rates by the Federal Reserve (Fed) would slow down now.

The already troublesome job of Fed policymakers is going to be more laborious now as core CPI that excludes food and oil prices has stepped up to 6.3% vs. the expectations of 6.1% and 40 basis points (bps) higher than the prior release.

In today’s session, the US Retail Sales data will be a key trigger. The economic data is not showing any sign of improvement in the overall demand.

The gold prices are attempting to reclaim the prior consolidation area formed in a narrow range of $1,697.12-1,709.62 on an hourly scale. An occurrence of the same will result in a fakeout and the odds of a bullish reversal will get bolstered. However, this is not enough to claim it a bullish reversal as it will require more filters.

The yellow metal is auctioning below the 20-period (High-Low) Exponential Moving Average (EMA) band. The Relative Strength Index (RSI) is oscillating in the 20.00-40.00 range but the downside momentum seems to fade away.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1697.22 at the time of writing. Pair opened at 1702.18 and is trading with a change of -0.29 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1728.35, 50 SMA 1740.95, 100 SMA @ 1791.91 and 200 SMA @ 1832.87.

The previous day high was 1731.87 while the previous day low was 1697.09. The daily 38.2% Fib levels comes at 1710.38, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1718.58, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1688.89, 1675.6, 1654.11
• Pivot resistance is noted at 1723.67, 1745.16, 1758.45

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