Technical Analysis: XAUUSD

XAUUSD decreased by around 1%

On Wednesday, as the US treasury yield and the USDX climbed, XAUUSD fell. It ended down 0.97% at US$2337.44 per ounce.

Officials at the Fed released hawkish statements

The Fed should not reduce the interest rate until significant progress has been made in lowering inflation, the Minneapolis Fed governor said on Tuesday. If the inflation rate doesn’t fall further, the Fed is likely to increase the interest rate, he added.

The USDX climbed to above the 105 mark

On Wednesday, the USDX climbed for the second straight trading day to above the 105 mark. It ended up 0.49% at 105.14.

XAUUSD is likely to retreat in the short term

the Chart of the Day

On the chart of the day, XAUUSD closed to the bearish engulfing pattern yesterday. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the support at 2325. It will decline further with potential support at 2300 if it breaks below 2325.

4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing the market trend is bearish. Investors should focus on whether XAUUSD will break through the resistance at 2355. It will decline further if it rebounds but is capped at 2355.

Key resistance: 2355, 2370

Key support: 2325, 2300

Generally speaking, as the USD and the US treasury yield climbed, XAUUSD is more likely to fall further in the short term. Investors should focus on US economic data during the day.