#XAUUSD @ 1653.48 Gold recovers a part of its intraday losses amid the emergence of some selling around the USD. (Pivot Orderbook analysis)

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• Gold recovers a part of its intraday losses amid the emergence of some selling around the USD.
• Aggressive Fed rate hike bets lift the US bond yields and should act as a tailwind for the buck.
• The prospects for more aggressive central banks could also contribute to capping the XAU/USD.

The pair currently trades last at 1653.48.

The previous day high was 1662.81 while the previous day low was 1614.85. The daily 38.2% Fib levels comes at 1644.49, expected to provide support. Similarly, the daily 61.8% fib level is at 1633.17, expected to provide support.

Gold attracts some buying in the vicinity of the $1,640 level on Thursday and recovers a major part of its early lost ground. The XAU/USD climbs back closer to the weekly high touched the previous day and is trading around the $1,655 region during the early North American session, still down over 0.30% for the day.

The US dollar struggles to preserve its intraday gains and drops to a fresh daily low in the last hour, which turns out to be a key factor offering support to the dollar-denominated gold. The USD downtick could be solely attributed to a goodish pickup in demand for the British pound, though a combination of factors could help limit deeper losses.

Investors seem convinced that the Federal Reserve will continue to hike interest rates at a faster pace to combat stubbornly high inflation. The bets were reaffirmed by the recent hawkish comments by a slew of FOMC officials. This, in turn, triggers a fresh leg up in the US Treasury bond yields and should act as a tailwind for the greenback.

Furthermore, the prospects for a more aggressive policy tightening by other major central banks might also contribute to capping the upside for the non-yielding gold. This makes it prudent to wait for strong follow-through buying before confirming that the XAU/USD has formed a near-term bottom and positioning for any further appreciating move.

That said, the prevalent risk-off mood, amid growing worries about a deeper global economic downturn and geopolitical risk, could extend support to the safe-haven precious metal. The mixed fundamental backdrop warrants some caution for aggressive traders and placing fresh directional bets around gold.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1654.63 at the time of writing. Pair opened at 1659.94 and is trading with a change of -0.32 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1683.67, 50 SMA 1727.47, 100 SMA @ 1768.74 and 200 SMA @ 1826.07.

The previous day high was 1662.81 while the previous day low was 1614.85. The daily 38.2% Fib levels comes at 1644.49, expected to provide support. Similarly, the daily 61.8% fib level is at 1633.17, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1628.92, 1597.91, 1580.96
• Pivot resistance is noted at 1676.88, 1693.83, 1724.84

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