Technical Analysis: XAUUSD

XAUUSD hit a 7-week low

On Tuesday, XAUUSD decreased by about 2%. At one point, it broke below the US$4500 mark and hit the lowest level since 30^th March.

The expectation that the Fed will increase the interest rate rose

As US inflation was better than expected in April, and geopolitical tension raised energy prices, the expectation that the Fed will increase the interest rate rose.

Gold ETF holdings decreased

As of 19^th May, gold ETF holdings reached 1036.852 tons, a decrease of 2 tons from the previous trading day, according to the data from the world’s largest gold ETF——SPDR Gold Trust.

The bearish market trend prevailed

the Chart of the Day

On the chart of the day, XAUUSD was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the support at 4420. It will decline with potential support at 4350 if it breaks below 4420.

4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, KDJ 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 4530. It will decline if it rebounds but is capped at 4530.

Key resistance: 4530,4590

Key support: 4420,4350

Generally speaking, the bearish market trend prevailed in the short term. Investors could sell as XAUUSD rebounds during the day.