Technical Analysis: XAUUSD

XAUUSD fell more than 3%

On Wednesday, XAUUSD fell more than 3% to a three-week low, hitting the largest single-day drop in five months.

USDX surged to a four-month high

On Wednesday, USDX surged to a four-month-high, closing up 1.686% at 105.16, the biggest one-day gain since March 2020, as Trump's immigration, tax and trade policies after the election are expected to stimulate higher growth and inflation in the United States.

U.S. Treasury yields rose sharply to multi-month highs

On Wednesday, U.S. Treasury yields rose to multi-month highs as Trump's victory in the presidential election triggered bets on economic policy shifts that could increase deficits and raise inflation.

The yield on the 10-year U.S. Treasury bond rose to 4.479% at one point, the highest since July, and closed at 4.441%, the biggest one-day gain since April.

Technically speaking, the bearish market trend prevailed in the short term

the Chart of the Day 

On the chart of the day, XAUUSD fell sharply from its highs. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD fell after a high-level death cross, showing XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the support at 2630. It will fall further with potential support at 2600 if it breaks below 2630.

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 fell after death cross, showing that the market trend is bearish. Investors should focus on whether XAUUSD will break through the resistance at 2657. It will fall further if it rebounds but is capped at 2657.

Key resistance: 2657,2678

Key support: 2630,2600

Generally speaking, affected by the strong rise of the USDX and US bond yields, XAUUSD is more likely to fall in the short term. Investors should focus on the results of the Federal Reserve's interest rate decision during the day.