Technical Analysis: XAUUSD

XAUUSD reached a record high again

On Monday, boosted by multiple positive factors, XAUUSD broke above the US$3630 and reached a record high again. It ended up 1.39% at US$3637.26 per ounce.

The expectation that the Fed will cut the interest rate further rose

US Non-Farm Payrolls (August) was 22,000 Vs. 75,000 (forecast), according to the data from the US Department of Labor. As US employment growth slowed down at a faster pace, the expectation that the Fed will cut the interest rate climbed.

The probability that the Fed will cut the interest rate by 25 basis points at the September meeting reached 88%, and the probability that the Fed will reduce the interest rate by 50 basis points is 12%, according to the data from the CME’s FedWatch.

People’s Bank of China has increased the holdings of gold for ten consecutive months

As of the end of August, gold reserves reached 74,020,000 ounces in China, increasing by 60,000 ounces from 73,960,000 ounces recorded at the end of July, according to the data from People’s Bank of China. People’s Bank of China has raised the holdings of gold for the 10^th straight month.

The bullish market trend prevailed

the Chart of the Day

On the chart of the day, XAUUSD continued rising. The bullish market trend prevailed. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that XAUUSD will jump further. Investors should focus on whether XAUUSD will break through the resistance at 3670. It will climb with potential resistance at 3700 if it breaks above 3670.

4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and climbed. The bullish market trend prevailed. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing that the market trend is bullish. Investors should focus on whether XAUUSD will break through the support at 3628. It will jump if it retreats but is stable above 3628.

Key resistance: 3670,3700

Key support: 3670,3700

Generally speaking, the bullish market trend prevailed in the short term. Investors should buy as XAUUSD retreats during the day.