Gold price has rebounded from $1,702.00 as yields are continuously facing downside pressure. (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 has rebounded from $1,702.00 as yields are continuously facing downside pressure.
• Rising anticipation for a slowdown in Fed’s policy tightening measures has kept US yields on tenterhooks.
• A slowdown in consumer spending and gasoline prices may trim the US inflation figures.

The pair currently trades last at 1708.44.

The previous day high was 1722.4 while the previous day low was 1702.23. The daily 38.2% Fib levels comes at 1709.93, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1714.7, expected to provide resistance.

Gold price (XAUUSD) has witnessed fresh demand from around $1,702.00 in the Tokyo session as the US dollar index (DXY) is displaying a subdued performance. The DXY is striving for a break above the intraday hurdle of 110.40. The precious metal has picked bids as the risk profile has turned mildly positive amid a sheer decline in the returns from US government bonds.

Rising anticipation for a slowdown in policy tightening measures by the Federal Reserve (Fed) has dragged the 10-year US Treasury yields below 4.09%. S&P500 futures have attempted recovery in Tokyo after a sell-off on Wednesday. Volatility ahead of the US mid-term elections outcome, and the announcement of a mass lay-off of employees at Facebook now punished the US 500-stock basket.

Now, investors are keeping an eye on the US inflation data-the show-stopper event. A decline in consumer spending in the third quarter of CY2022 and a significant fall in gasoline prices are pointing to a downside in the inflation figures. The headline inflation could trim to 8.0% while the core Consumer Price Index (CPI) could drop a little lower by 10 bps to 6.5%.

On an hourly scale, the gold price is oscillating in a range of $1,702.10-1,722.40 after a sheer upside move. The precious metal is still holding the 50-period Exponential Moving Average (EMA) at $1,698.40, which signals that the upside is intact.

The Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 after remaining in the bullish range, which indicates that the upside momentum has exhausted but that doesn’t warrant a bearish reversal.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1708.44 at the time of writing. Pair opened at 1704.58 and is trading with a change of 0.23 % .

The pair is trading above its 20 Daily moving average @ 1656.13, above its 50 Daily moving average @ 1673.51 , below its 100 Daily moving average @ 1716.29 and below its 200 Daily moving average @ 1803.93

The previous day high was 1722.4 while the previous day low was 1702.23. The daily 38.2% Fib levels comes at 1709.93, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1714.7, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1697.07, 1689.57, 1676.9
• Pivot resistance is noted at 1717.24, 1729.91, 1737.41

[/s2If]
Join Our Telegram Group