Gold rallies to 2, 1/2-month highs at $1,750 as the US Dollar tumbles. (Pivot Orderbook analysis)

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• Gold rallies to 2, 1/2-month highs at $1,750 as the US Dollar tumbles.

The pair currently trades last at 1750.07.

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 support. Similarly, the daily 61.8% fib level is at 1714.7, expected to provide support.

Gold futures have shrugged off the soft tone seen earlier today to rally $40 higher and reach the mid-range of the $1,700s. The precious metal has been boosted by the broad-based US Dollar weakness following the release of US inflation data.

Consumer inflation rose at a slower-than-expected pace in the US, which has set the scene for the US Federal Reserve to ease its aggressive monetary policy path. This has spurred risk appetite, hammering the US Dollar and Treasury bonds and pushing precious metals higher.

US CPI increased by 0.4% in October, unchanged from the previous month, against market expectations of a 0.6% reading, according to data from the US Bureau of Labor Statistics. Year-on-year, the CPI cooled down to a 7.7% rate, beyond the consensus of 8%, and after an 8.2% increase in September.

The core CPI, the Federal Reserve’s preferred gauge for inflationary trends, has eased to 0.3% in October, from 0.6% in September, against expectations of a 0.5% increase. Year on year, the core CPI has retreated to 6.3% from 6.6% in September.

Furthermore, US weekly jobless claims increased above expectations in the week of November 4; 225,000 new claims against the 220,000 expected, from 218,00 in the previous month. This adds to evidence that labor market conditions are starting to loosen.

The US Dollar Index, which had appreciated more than 16% so far this year, buoyed by the Federal Reserve’s aggressive monetary tightening has retreated about 2.2% after the data. The benchmark US 10-yeat Treasury bonds have dropped 30 basis points to 3.83%.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1750.07 at the time of writing. Pair opened at 1704.58 and is trading with a change of 2.67 % .

The pair is trading above its 20 Daily moving average @ 1656.13, above its 50 Daily moving average @ 1673.51 , above 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 support. Similarly, the daily 61.8% fib level is at 1714.7, expected to provide support.

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

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