#XAUUSD @ 1,861.39 Gold price is inside the woods above $1,860.00 as investors await US inflation for fresh cues. (Pivot Orderbook analysis)

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• Gold price is inside the woods above $1,860.00 as investors await US inflation for fresh cues.
• Fed Harker sees interest rates above 5% this year as inflation is still elevated.
• The monthly headline and core CPI are both expected to deliver an expansion by 0.4%, according to a Reuters poll.

The pair currently trades last at 1861.39.

The previous day high was 1872.33 while the previous day low was 1852.84. The daily 38.2% Fib levels comes at 1864.88, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1860.29, expected to provide support.

Gold price (XAU/USD) is demonstrating a decline in volatility ahead of the United States inflation data for fresh impetus. The precious metal is displaying a back-and-forth motion above $1,860.00, however, the downside looks favored amid a sheer decline in the risk appetite of the market participants.

The US Dollar Index (DXY) is struggling to deliver a break above the critical resistance of 103.35 in the Asian session. S&P500 futures have added losses further as disappointment from quarterly earnings has faded optimism for the risk-perceived assets. Also, back-to-back events of shooting down unidentified flying objects on the radar of the Pentagon have dampened the market mood. The alpha created on the 10-year US government bonds has dropped marginally below 3.74%.

Renewed concerns of further interest rate hikes by the Federal Reserve (Fed) have spooked market sentiment. Philadelphia Fed President Patrick Harker sees interest rates above 5% this year as inflation is still elevated. He sees on rate cut announcement this year as higher interest rates should remain for a longer period of time to achieve price stability.

The release of the US Consumer Price Index (CPI) will provide confident guidance on interest rates. As per the consensus, monthly headline and core CPI are both expected to deliver an expansion by 0.4%, according to a Reuters poll.

Gold price has tested the breakdown of the Inverted Flag chart pattern on a two-hour scale with weak buying strength. The yellow metal is likely to display a perpendicular downside ahead after the asset will come out of balance.

The 20-period Exponential Moving Average (EMA) at $1,866.07 is barricading Gold bulls, which indicates more weakness ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is hovering near 40.00. A breakdown into the bearish range of 20.00-40.00 will activate the downside momentum.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1863.14 at the time of writing. Pair opened at 1864.33 and is trading with a change of -0.06 % .

The pair is trading below its 20 Daily moving average @ 1909.06, above its 50 Daily moving average @ 1855.63 , above its 100 Daily moving average @ 1776.55 and above its 200 Daily moving average @ 1775.81

The previous day high was 1872.33 while the previous day low was 1852.84. The daily 38.2% Fib levels comes at 1864.88, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1860.29, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1854.0, 1843.68, 1834.51
• Pivot resistance is noted at 1873.49, 1882.66, 1892.98

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