#XAUUSD @ 1,748.24 Gold price catches fresh bids and snaps a four-day losing streak amid renewed US Dollar selling bias. (Pivot Orderbook analysis)

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• Gold price catches fresh bids and snaps a four-day losing streak amid renewed US Dollar selling bias.
• Bets for smaller rate hikes by the Federal Reserve weigh on the US Treasury bond yields and the USD.
• A positive risk tone might turn out to be the only factor that could cap further upside for Gold price.
• Traders now await the November FOMC meeting minutes on Wednesday for a fresh directional impetus.

The pair currently trades last at 1748.24.

The previous day high was 1753.06 while the previous day low was 1732.61. The daily 38.2% Fib levels comes at 1740.42, expected to provide support. Similarly, the daily 61.8% fib level is at 1745.25, expected to provide support.

Gold price regains some positive traction on Tuesday and snaps a four-day losing streak to a one-and-half-week low touched the previous day. The XAU/USD sticks to gains just below the $1,750 level through the mid-European session and for now, seems to have stalled its recent corrective pullback from a three-month high.

The US Dollar comes under some selling pressure and halts the recent bounce from its lowest level since August 12, which, in turn, is seen boosting the Dollar-denominated gold. Investors seem convinced that the Federal Reserve (Fed) will slow the pace of its rate-hiking cycle and have been pricing in a greater chance of a relatively smaller 50 bps lift-off at the December meeting. This is evident from a modest downtick in the US Treasury bond yields and weighs on the USD.

That said, the recent hawkish signals from several Fed officials suggest that the US central bank will continue to tighten its monetary policy to combat stubbornly high inflation. This, in turn, should act as a tailwind for the US bond yields and help limit losses for the US Dollar, capping any further gains for the non-yielding Gold price. Hence, the focus will remain on the minutes of the Fed’s November meeting, due on Thursday, which will be looked upon for cues about future rate hikes.

In the meantime, worries about economic headwinds stemming from a new COVID-19 outbreak in China and the imposition of fresh lockdowns could benefit the greenback’s status as the global reserve currency. Apart from this, signs of stability in the financial markets might also contribute to capping the upside for the safe-haven XAU/USD. This makes it prudent to wait for strong follow-through buying before traders start positioning for a further appreciating move for Gold price.

Next on tap is the release of the Richmond Manufacturing Index from the US. This, along with a scheduled speech by Cleveland Federal Reserve President Loretta Mester and the US bond yields, will influence the US Dollar price dynamics. Apart from this, traders will take cues from the broader risk sentiment to grab short-term opportunities around the Gold price.

From a technical perspective, any subsequent move up is likely to confront some resistance near the $1,755 region. A sustained strength beyond might trigger a short-covering rally towards the $1,765 area. The next relevant hurdle is pegged near the $1,770 level, above which Gold price could climb back to retest the multi-month high, around the $1,785 zone touched last week.

On the flip side, the weekly low, around the $1,733-$1,732 region, marks a previous strong resistance breakpoint and should continue to protect the immediate downside. That said, a convincing breakthrough might prompt aggressive technical selling and make the Gold price vulnerable to accelerate the fall to challenge the $1,700 round figure.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1747.31 at the time of writing. Pair opened at 1739.21 and is trading with a change of 0.47 % .

The pair is trading above its 20 Daily moving average @ 1702.09, above its 50 Daily moving average @ 1681.62 , above its 100 Daily moving average @ 1711.91 and below its 200 Daily moving average @ 1801.46

The previous day high was 1753.06 while the previous day low was 1732.61. The daily 38.2% Fib levels comes at 1740.42, expected to provide support. Similarly, the daily 61.8% fib level is at 1745.25, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1730.19, 1721.18, 1709.74
• Pivot resistance is noted at 1750.64, 1762.08, 1771.09

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