#XAUUSD @ 1,819.67 Powell says the Fed is prepared to increase the pace of rate hikes if needed. (Pivot Orderbook analysis)

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• Powell says the Fed is prepared to increase the pace of rate hikes if needed.
• US Dollar jumps amid growing expectations of a larger rate hike from the Fed.
• XAU/USD to remain under pressure while under $1,820/oz.

The pair currently trades last at 1819.67.

The previous day high was 1858.35 while the previous day low was 1845.18. The daily 38.2% Fib levels comes at 1850.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1853.32, expected to provide resistance.

Gold price accelerated to the downside following the release of Fed Chair Powell’s remarks. XAU/USD bottomed at $1,815, the lowest level in a week. It is falling almost $30 on Tuesday, the worst day in a month.

Federal Reserve Chairman Jerome Powell mentioned in prepared remarks that strong economic data will likely lead to higher interest rates than previously thought, in order to curb inflation.

The speech was seen as hawkish by market participants. The odds of a 50 basis points rate hike jumped. According to interest-rate futures tracked by CME Group, market-implied probabilities of a 50 bps increase at the March FOMC meeting rose from nearly 30% to 50%.

Jerome Powell Live: Fed Chair delivers hawkish testimony in US Senate

US Treasury bonds collapsed. The US 10-year yield rose from nearly 3.94% to above 4% and then pulled back; the 2-year yield hit at 4.97%, the highest level since 2008.

Gold prices extended the decline even as US yields moved off lows, affected by a stronger US Dollar and risk aversion. Silver is losing 4%, trading at $20.19, the lowest level in four months.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1820.17 at the time of writing. Pair opened at 1846.69 and is trading with a change of -1.44 % .

The pair is trading below its 20 Daily moving average @ 1842.61, below its 50 Daily moving average @ 1869.61 , above its 100 Daily moving average @ 1802.84 and above its 200 Daily moving average @ 1775.44

The previous day high was 1858.35 while the previous day low was 1845.18. The daily 38.2% Fib levels comes at 1850.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1853.32, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1841.8, 1836.9, 1828.63
• Pivot resistance is noted at 1854.97, 1863.24, 1868.14

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