Technical Analysis: XAUUSD

XAUUSD broke below the US$4000 mark

On Monday, as risk aversion cooled down, XAUUSD plunged by 3%. At one point, it broke below the US$4000 mark, hitting a two-week low.

Trade tension between China and the US eased

China and the US reached an agreement on the framework of potential trade deals last weekend. The US President Trump and the Chairman of the People’s Republic of China Xi Jinping will explore the deals more when they meet later this week.

Gold ETF holdings declined

As of 27^th October, gold ETF holdings decreased by 8.01 tons to 1038.92 tons, according to the data from the World’s largest Gold ETF--SPDR Gold Trust.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, XAUUSD closed in negative territory yesterday. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the support at 3945. It will decline with potential support at 3895 if it breaks below 3945.

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, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether XAUUSD will break through the resistance at 4050. It will fall if it rebounds but is capped at 4050.

Key resistance: 4050,4110

Key support: 3945,3895

Generally speaking, the bearish market trend prevailed in the short term. Investors should focus on US economic data during the day.