#XAUUSD @ 1626.29 Gold price has displayed a rebound move at $1,622.50, downside seems favored amid soaring yields. (Pivot Orderbook analysis)

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• Gold price has displayed a rebound move at $1,622.50, downside seems favored amid soaring yields.
• Risk sentiment turned extremely sour after Fed’s Beige Book warned risk of elevating inflation.
• US Labor demand has been moderated in anticipation of an economic slowdown.

The pair currently trades last at 1626.29.

The previous day high was 1654.5 while the previous day low was 1627.81. The daily 38.2% Fib levels comes at 1638.01, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1644.3, expected to provide resistance.

Gold price (XAU/USD) has displayed a rebound move after refreshing a three-week low at $1,622.50. The precious metal has sensed buying interest as momentum oscillators have turned oversold at intraday timeframe. However, further downside is still favored amid negative market sentiment.

The US dollar index (DXY) has refreshed its day’s high at 113.06 and is aiming to establish above the 113.00 hurdle. Risk sentiment turned extremely sour on Wednesday after the minutes from Federal Reserve (Fed)’s Beige Book cited various risks.

According to the Fed’s Beige Book, price pressures are still elevating amid rising inputs prices used by firms for production, however, the fuel and freight costs have declined amid weaker gasoline prices. Labor demand has turned moderate as firms have preferred the postponement of recruitment services in anticipation of an economic slowdown.

Meanwhile, the 10-year US Treasury yields have climbed to near 4.15% amid soaring Fed bets. As per the CME FedWatch tool, chances for a fourth consecutive 75 basis point (bps) rate hike carry more than 95%.

On an hourly scale, the gold prices are declining towards the two-year placed at $1,614.85, recorded on 28 September 2022. The 20-period Exponential Moving Average (EMA) at $1,631.90 is trending south, which adds to the downside filters.

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 1625.72 at the time of writing. Pair opened at 1629.41 and is trading with a change of -0.23 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1667.5, 50 SMA 1702.32, 100 SMA @ 1744.01 and 200 SMA @ 1816.05.

The previous day high was 1654.5 while the previous day low was 1627.81. The daily 38.2% Fib levels comes at 1638.01, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1644.3, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1619.98, 1610.55, 1593.29
• Pivot resistance is noted at 1646.67, 1663.93, 1673.36

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