#XAUUSD @ 1650.41 Gold price has failed to sustain above $1,650.00 amid a rebound in the DXY. (Pivot Orderbook analysis)

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• Gold price has failed to sustain above $1,650.00 amid a rebound in the DXY.
• The risk-on impulse is intact despite soaring recession fears.
• A fourth consecutive 75 bps rate hike by the Fed seems certain now.

The pair currently trades last at 1650.41.

The previous day high was 1668.53 while the previous day low was 1643.84. The daily 38.2% Fib levels comes at 1659.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1653.27, expected to provide resistance.

Gold price (XAU/USD) has sensed selling pressure while attempting to sustain above the immediate hurdle of $1,650.00 in the Tokyo session. The pullback move in the precious metal after dropping to near $1,646.83 in the late New York session has terminated as the US dollar index (DXY) has rebounded.

The DXY has picked bids around 112.00 after remaining in the grip of bears. However, the risk-on sentiment is still intact. S&P500 futures are holding the overnight gains followed by a bullish Monday. Also, the 10-year US Treasury yields is oscillating below the critical figure of 4%. Going forward, the yellow metal may resume its downside journey towards $1,640.00 as bets for hawkish Federal Reserve (Fed) monetary policy are solid.

As per the CME FedWatch tool, the chances of an increment in the interest rates by 75 bps consecutively for the fourth time stand at 98.9%.

Meanwhile, recession fears have advanced after negative commentary from J.P. Morgan on financial instruments. Strategists at J.P. Morgan cited that they are cutting back on their delivery longs in equities and trimming their underweight position in bonds due to increased risk that central banks will make a hawkish policy error, reported Reuters.

On an hourly scale, the gold prices have picked significant selling pressure in several attempts of surpassing the highest auction area placed in a range of $1,661.70-1,684.50. The precious metal has sensed barricades around the 20-period Exponential Moving Average (EMA) at $1,654.43.

The Relative Strength Index (RSI) (14) is hovering around 40.00, and a drop below the same will trigger the downside momentum.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1651.54 at the time of writing. Pair opened at 1650.1 and is trading with a change of 0.09 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1670.36, 50 SMA 1708.42, 100 SMA @ 1748.03 and 200 SMA @ 1817.76.

The previous day high was 1668.53 while the previous day low was 1643.84. The daily 38.2% Fib levels comes at 1659.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1653.27, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1639.78, 1629.47, 1615.09
• Pivot resistance is noted at 1664.47, 1678.85, 1689.16

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