#XAUUSD @ 1,740.05 Gold price remains sidelined after snapping four-day downtrend., @nehcap view: Further recovery expected (Pivot Orderbook analysis)

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• Gold price remains sidelined after snapping four-day downtrend.
• Firmer sentiment downbeat yields weigh on the US Dollar but pre-event anxiety challenges the XAU/USD bulls.
• More evidences for Fed’s 50 bps rate hike could favor the Gold buyers.

The pair currently trades last at 1740.05.

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 resistance. Similarly, the daily 61.8% fib level is at 1745.25, expected to provide resistance.

Gold price (XAU/USD) steadies around $1,740 after pushing back the bears the previous day. In doing so, the yellow metal portrays the typical pre-event anxiety while keeping the buyers positive amid softer US Dollar and Treasury yields.

The chatters surrounding the Federal Reserve’s (Fed) easy rate hikes and firmer prints of equities joined the alleged stockpiling of Gold by China to underpin the XAU/USD’s run-up the previous day. However, Covid woes from the dragon nation challenged the bullion buyers.

That said, Richmond Fed Manufacturing Index improved to -9 for November versus -10 prior while Kansas City Federal Reserve President Esther George recently said, “(We) could well take a higher interest rate for some time to convince households to hold on to savings.”

It’s worth noting that Nikkei Asia quotes the World Gold Council (WGC) data to spot increasing Gold buying from China. The news also mentioned the unloading of the US Treasury bonds by Beijing, which in turn favored the XAU/USD buyers.

Alternatively, seven-month high coronavirus numbers and multiple activity restrictions in the key states of the world’s second-largest economy challenged the Gold bulls.

Amid these plays, stocks in Europe and the UK, as well as Wall Street, closed positively whereas the US 10-year Treasury yields dropped six basis points (bps) to 3.76%.

Looking forward, the Gold price may witness a lackluster day ahead of the European session amid a cautious mood before the preliminary readings of November’s PMIs. Also important will be the Federal Open Market Committee (FOMC) Meeting Minutes and the US Durable Goods Orders for October.

Market players will look for clues of more confirmatory signals for the economic transition and the Fed’s 50 basis points (bps) worth of rate hike in December to continue with the risk-on mood and favor the gold buyers.

Although sustained trading below the 50-SMA and observance of a one-week-old descending trend line keeps Gold sellers hopeful, an upwards-sloping trend line from November 09, around $1,737 by the press time, challenges the XAU/USD bears.

It’s worth noting that the RSI (14) and MACD conditions are showing sellers’ exhaustion and hence an upside clearance of the immediate resistance line, close to $1,746, could quickly propel the quote towards the 50-SMA hurdle of $1,761.

Following that, the monthly high surrounding $1,787 and the $1,800 threshold will be on the Gold buyer’s radar.

Alternatively, a downside break of the fortnight-old support line, near $1,737, may drop to the $1,720 level before targeting the $1,700 round figure.

However, the bullion’s downside past $1,700 needs validation from the 61.8% Fibonacci retracement level of November 03-15 upside, close to $1,681.

Overall, Gold price is likely to improve further but a clear break of the 50-SMA appears necessary to convince the bulls.

Trend: Further recovery expected

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1740.32 at the time of writing. Pair opened at 1739.21 and is trading with a change of 0.06% % .

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 resistance. Similarly, the daily 61.8% fib level is at 1745.25, expected to provide resistance.

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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