#XAUUSD @ 3.8323 Gold price is advancing towards $1,660.0 amid an upbeat market mood. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Gold price is advancing towards $1,660.0 amid an upbeat market mood.
• A Fed policymaker adopted a less-hawkish approach in a long time on interest rate guidance.
• The returns on 10-year US bonds have trimmed to 2.20% amid a decline in hawkish Fed bets.

The pair currently trades last at 3.8323.

The previous day high was 1658.24 while the previous day low was 1617.35. The daily 38.2% Fib levels comes at 1642.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1632.97, expected to provide resistance.

Gold price (XAU/USD) is marching towards the immediate hurdle of $1,660.00 sharply as the positive market sentiment witnessed on Friday is expected to continue further. The precious metal picked significant bids around the two-year low at $1,614.85 and displayed a juggernaut rally, which may advance further.

The risk-on impulse shot vigorously after the Federal Reserve (Fed) policymaker supported a slowdown in the current pace of hiking interest rates to avoid sending the economy into an ‘unforced downturn’. San Francisco Fed President Mary Daly cited that too sharp increment in interest rates has trimmed the consensus for growth prospects. Therefore, a slowdown in the rate hike pace would lift some pressure on the economy. A less-hawkish commentary from a Fed policymaker in a very long time lifted the market sentiment and the S&P500 soared by more than 2.60%.

Meanwhile, the US dollar index (DXY) displayed a vertical fall and settled below the 112.00 cushion. The 10-year benchmark US Treasury yields declined to 4.20% as chances for a 75 basis point (bps) rate hike by the Fed have trimmed to 88%.

On Monday, investors will focus on the release of the S&P PMIs data. The Manufacturing PMI is expected to decline to 51.2 vs. the prior release of 52.0 while the Services PMI may drop to 49.2 from 49.3 reported earlier.

Gold price has witnessed a stellar buying interest after testing the demand zone placed in a $1,614.85-1,621.60 range. The precious metal has crossed the 50-and 200-Exponential Moving Averages (EMAs) at $1,637.50 and $1,660.00 respectively in no time, which signals the strength of the gold bulls.

Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1657.35 at the time of writing. Pair opened at 1657.35 and is trading with a change of 0.0 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1665.97, 50 SMA 1696.19, 100 SMA @ 1739.67 and 200 SMA @ 1814.23.

The previous day high was 1658.24 while the previous day low was 1617.35. The daily 38.2% Fib levels comes at 1642.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1632.97, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1630.39, 1603.42, 1589.5
• Pivot resistance is noted at 1671.28, 1685.2, 1712.17

[/s2If]
Join Our Telegram Group