#XAUUSD @ 1629.20 Gold price may revisit two-year low at $1,614.85 as central banks are prepared for a fresh rate hike cycle. (Pivot Orderbook analysis)

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• Gold price may revisit two-year low at $1,614.85 as central banks are prepared for a fresh rate hike cycle.
• The 10-year US yields have printed a fresh 14-year high at 4.14%.
• A rebound in risk-off impulse has pushed the DXY to near 113.00.

The pair currently trades last at 1629.20.

The previous day high was 1660.94 while the previous day low was 1645.93. The daily 38.2% Fib levels comes at 1655.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1651.66, expected to provide resistance.

Gold price (XAU/USD) has shifted its business below $1,630.00 after surrendering the cushion in the last New York session. The precious metal has witnessed a steep fall as yields sky-rocketed. The 10-year US Treasury yields refreshed its 14-year high at 4.14% in New York.

Returns on US government bonds approached the sky as odds remain firm for a fourth consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed). As per the CME FedWatch tool, the chances of a 75 bps rate hike announcement by the Fed in November stand at 94.5%. Price pressures in the global economy have not softened in response to the extent of rate hikes by the central banks.

The European Central Bank (ECB) is set to announce a bigger rate hike to curtain inflationary pressures next week. Also, a reclaim of double-digit inflation figures in the UK economy has bolstered the chances of the Bank of England (BOE)’s bumper rate hike announcement.

Meanwhile, the US dollar index (DXY) has reclaimed the critical resistance of 113.00 as the risk-on market mood has faded. S&P500 faced pressure after a two-day rally as investors shifted to long liquidation after making returns on value bets.

On an hourly scale, gold prices have witnessed a steep fall after dropping below the 61.8% Fibo retracement (placed from a two-year low at $1,614.85 to October high at $1,729.58) at $1,659.00. The precious metal looks set to re-visit a two-year low at $1,614.85.

A declining 50-period Exponential Moving Average (EMA) at $1,643.66 indicates more weakness ahead.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals that the downside momentum has already been triggered.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1629.41 at the time of writing. Pair opened at 1652.2 and is trading with a change of -1.38 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1669.72, 50 SMA 1705.58, 100 SMA @ 1746.18 and 200 SMA @ 1817.02.

The previous day high was 1660.94 while the previous day low was 1645.93. The daily 38.2% Fib levels comes at 1655.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1651.66, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1645.11, 1638.01, 1630.1
• Pivot resistance is noted at 1660.12, 1668.03, 1675.13

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