#XAUUSD @ 1,796.89 The US Producer Price Index eased in November, but it was not enough. (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)]

• The US Producer Price Index eased in November, but it was not enough.
• Market participants await the US Federal Reserve monetary policy decision next week.
• The XAU/USD pair maintains its bullish potential intact, despite the lack of follow-through.

The pair currently trades last at 1796.89.

The previous day high was 1794.93 while the previous day low was 1781.44. The daily 38.2% Fib levels comes at 1789.78, expected to provide support. Similarly, the daily 61.8% fib level is at 1786.59, expected to provide support.

Spot gold jumped to $1,804.43 ahead of the US opening but quickly retreated to currently trade at around $1,797 a troy ounce. The American Dollar remains on the back foot despite a dismal market mood, as the United States Producer Price Index (PPI) failed to impress. According to the US Bureau of Labor Statistics, inflation at wholesale levels rose at an annual pace of 7.4% in November, meeting market expectations. However, the core reading, which excludes volatile food and energy prices, was up by 6.2%, below the previous 6.7%, but above the 6% expected.

Demand for the US Dollar is limited ahead of the critical US Federal Reserve (Fed) monetary policy decision next week. The central bank may slow the pace of tightening and hike by 50 bps before pausing, ending the most aggressive cycle of its history. Nevertheless, speculative interest still sees a modest chance of another 75 bps hike amid resilient economic data.

XAU/USD trimmed its early weekly losses, and trades flat when compared to Monday’s opening. Still, it managed to post a higher low and a higher high, maintaining the bullish potential intact. The bright metal, however, is still unable to clear the psychological resistance at $1,800. Once above it, gold has the path clear towards the $1,850 price zone. A near-term support level comes at $1.780, while stronger buying interest is aligned at around $1,765.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1795.01 at the time of writing. Pair opened at 1788.6 and is trading with a change of 0.36 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1765.93, 50 SMA 1708.32, 100 SMA @ 1717.31 and 200 SMA @ 1792.96.

The previous day high was 1794.93 while the previous day low was 1781.44. The daily 38.2% Fib levels comes at 1789.78, expected to provide support. Similarly, the daily 61.8% fib level is at 1786.59, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1781.72, 1774.83, 1768.23
• Pivot resistance is noted at 1795.21, 1801.81, 1808.7

[/s2If]
Join Our Telegram Group