#XAUUSD @ 1666.00 Gold prices have slipped below $1,670.00 as the risk-off profile has rebounded firmly. (Pivot Orderbook analysis)

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• Gold prices have slipped below $1,670.00 as the risk-off profile has rebounded firmly.
• Fed minutes will provide a detailed explanation of announcing a third consecutive 75 bps rate hike.
• A divergence in headline and core CPI may create troubles for the Fed.

The pair currently trades last at 1666.00.

The previous day high was 1699.96 while the previous day low was 1665.79. The daily 38.2% Fib levels comes at 1678.84, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1686.91, expected to provide resistance.

Gold price (XAU/USD) has witnessed a vertical fall after failing to sustain above the critical hurdle of $1,680.00 in the late New York session. Selling pressure built in the S&P500 in the last hours of trade on Tuesday after an extended weekend indicates that the risk-off impulse has rebounded firmly ahead of the release of the Federal Reserve (Fed) monetary policy minutes on Wednesday.

Meanwhile, the US dollar index (DXY) has recovered the majority of its losses and is trading at around 113.30, at the time of writing. The DXY picked bids after dropping to near 112.50. Also, the 10-year US Treasury yields have rebounded and are aiming to recapture the 4% hurdle.

On Wednesday, the release of the Fed minutes will provide an elaborative explanation behind announcing the third 75 basis points (bps) interest rate hike. The minutes will also provide viewpoints of all Fed policymakers toward interest rate targets to achieve price stability. Apart from that, the current situation of economic prospects will be of utmost importance.

Later this week, the US Consumer Price Index (CPI) data will be of utmost importance. The headline US inflation may trim to 8.1%, as per the expectations. While the core CPI that doesn’t consider oil and food prices may increase to 6.5%.

On an hourly scale, the gold prices have slipped again below the 50% Fibonacci retracement placed at $1,672.61 after failing to sustain above the 50-period Exponential Moving Average (EMA) at $1,677.00. The 200-period EMA at $1,685.00 has tilted towards the south, which adds to the downside filters.

However, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bearish range of 20.00-40.00, which indicates a consolidation for a while.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1666.28 at the time of writing. Pair opened at 1668.67 and is trading with a change of -0.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1676.06, 50 SMA 1720.03, 100 SMA @ 1757.82 and 200 SMA @ 1821.31.

The previous day high was 1699.96 while the previous day low was 1665.79. The daily 38.2% Fib levels comes at 1678.84, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1686.91, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1656.32, 1643.97, 1622.15
• Pivot resistance is noted at 1690.49, 1712.31, 1724.66

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