#XAUUSD @ 1,928.93 US PPI drops unexpectable in February, Retail Sales decline more than expected. (Pivot Orderbook analysis)

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• US PPI drops unexpectable in February, Retail Sales decline more than expected.
• Credit Suisse shares hit new lows, tumbling by almost 30%.
• Gold bounces 2% from its daily low, and climbs to its highest since early February.

The pair currently trades last at 1928.93.

The previous day high was 1914.32 while the previous day low was 1895.43. The daily 38.2% Fib levels comes at 1902.65, expected to provide support. Similarly, the daily 61.8% fib level is at 1907.1, expected to provide support.

Gold price resume the upside on Wednesday, boosted by risk aversion across financial markets, triggered by worries about the health of Credit Suisse. The yellow metal rose further after the release of US data that came in below expectations, adding to speculations about a softer Federal Reserve.

XAU/USD peaked at $1,930, its highest level since February 2. From last week, gold has risen almost 8% supported by the sharp decline in global government bond yields.

The rally in gold has just receive another boost from US data. The US Producer Price Index dropped unexpectedly in February by 0.1%; market consensus was for a 0.3% increase. The core PPI stayed unchanged and the annual rate fell from 5.4% to 4.4%, well below the 5.2% expected. A different report showed retail sales fell by 0.4% in Febuary, more than the 0.3% estimated.

US economic numbers favors the scenario of a softer Fed that will have its meeting next week. US yield printed fresh lows, approaching to Monday’s bottom. The US 10-year yield is at 3.47% down 6% for the day; while the 2-year is at 3.90%.

Prior to US data, bonds were already on demand and gold was higher boosted by banking-industry jitters. Credit Suisse’s main shareholder, the Saudi National Bank ruled out providing more money and pushed banks stocks across the globe to the downside. Credit Suisse shares area falling almost 30%.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1927.89 at the time of writing. Pair opened at 1904.16 and is trading with a change of 1.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1840.85, 50 SMA 1874.19, 100 SMA @ 1815.61 and 200 SMA @ 1775.68.

The previous day high was 1914.32 while the previous day low was 1895.43. The daily 38.2% Fib levels comes at 1902.65, expected to provide support. Similarly, the daily 61.8% fib level is at 1907.1, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1894.95, 1885.75, 1876.06
• Pivot resistance is noted at 1913.84, 1923.53, 1932.73

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