#XAUUSD @ 1671.30 Gold price has turned sideways after a wild gyration, awaiting a fresh trigger for a decisive break. (Pivot Orderbook analysis)

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• Gold price has turned sideways after a wild gyration, awaiting a fresh trigger for a decisive break.
• Higher interest rates are forcing corporate to postpone their expansion plans.
• The DXY is aiming to recapture the fresh two-decade high around 111.80.

The pair currently trades last at 1671.30.

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 price (XAU/USD) is bewildered after gyrating in a wider range post the announcement of the monetary policy by the Federal Reserve (Fed). The precious metal bounced sharply after testing a two-year low at $1,654.50. However, the upside seems capped at around $1,685.00, which has shifted the yellow metal back inside the woods.

Federal Reserve (Fed)’s agenda of cooling down the ultra-hot inflation is hurting the corporate at most. Higher obligations on borrowings are forcing them to postpone their current expansion plans and drop investment in fruitful opportunities. This is resulting in a sheer decline in the growth projections and eventually in employment generation. Also, the housing sector is becoming a major victim as higher interest rates are resulting in higher monthly installments, which are forcing them to postpone their home-purchase plans.

Meanwhile, the US dollar index (DXY) is aiming to recapture the two-decade high of 111.81 ahead of S&P Global PMI data. As per the preliminary estimates, the Manufacturing PMI will land lower at 51.1 vs. the prior release of 51.5. While the Services PMI will improve to 45.0 against the prior print of 43.7.

Gold price is displaying topsy-turvy moves in a wider range of $1,654.00-1,690.50 on an hourly scale. The 21-period Exponential Moving Average (EMA) at $1.670.00 is overlapping with the asset price, which signals a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating into the 40.00-60.00 range, which seeks a further trigger for a decisive move.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1671.06 at the time of writing. Pair opened at 1673.94 and is trading with a change of -0.17 % .

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

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