#XAUUSD @ 1671.29 Gold looks vulnerable as government bond yields continue to rise. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE 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_level4)]

• Gold looks vulnerable as government bond yields continue to rise.
• Yellow metal peaked at 1684$ and retreated back to the 1670$ area.
• Price continues to move in a wide range, bearish bias.

The pair currently trades last at 1671.29.

The previous day high was 1688.11 while the previous day low was 1653.97. The daily 38.2% Fib levels comes at 1675.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1667.01, expected to provide support.

Gold rose after the beginning of the American session to 1685$, hitting a fresh daily high but it failed to hold above 1680$ and retreated to 1667$. It is hovering around 1670$, as it continues to move sideways in a wide range between 1655$ and 1685$.

Volatility remains elevated but XAUUSD holds within the range. The consolidation takes place within a bearish trend that remains in place. A firm recovery above 1680$ could open the doors for a larger bullish correction. On the flip side, under 1650$ could trigger an acceleration targeting initially 1640$.

Following the 75 bps rate hike from the Federal Reserve, US yield continues to rise on Thursday. The US 10-year yield are at 3.70%, the highest level since February 2011 while the 2-year reach 4.15%, the highest since 2007. Higher yields are usually not good news for gold bulls. In the current context, bad news could be positive for gold.

Earlier on Thursday, the Japanese government’s intervention in the currency market weakened the dollar and favoured the rebound in XAU/USD. However, the recovery was short-lived.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1672.11 at the time of writing. Pair opened at 1673.94 and is trading with a change of -0.11 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1705.74, 50 SMA 1733.64, 100 SMA @ 1779.52 and 200 SMA @ 1829.69.

The previous day high was 1688.11 while the previous day low was 1653.97. The daily 38.2% Fib levels comes at 1675.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1667.01, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1655.9, 1637.87, 1621.76
• Pivot resistance is noted at 1690.04, 1706.15, 1724.18

[/s2If]
Join Our Telegram Group