Technical Analysis: XAUUSD

XAUUSD fell to a two-week low

On Wednesday, as the USDX climbed, XAUUSD fell to US$1905.5 per ounce, the lowest since 25^th August.

US CPI fell

US CPI, y/y (August) reached 3.7%, the highest since May 2022, according to the data from the US Department of Labor on Wednesday. It climbed for the second straight month. US CPI, m/m (August) was 0.6%, the highest since June 2022. US Core CPI, m/m (August) hit 0.3%. It registered the first increase in six months. The probability that the Fed will increase the interest rate before November climbed after US CPI was released.

Gold ETF holdings declined

Gold ETF holdings decreased by 2.88 metric tonnes to 882.01 metric tonnes on the 13^th September, according to the 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 continued falling. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD experienced death cross below the zero axis, showing XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the resistance at 1920. It will fall further if it rebounds but is capped at 1920.

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, Vegas tunnel went downwards, showing the bearish market trend prevailed. Investors should focus on whether XAUUSD will break through the support at 1904. It will fall further with potential support at 1885 if it breaks below 1904.

Key resistance: 1920, 1930

Key support: 1904, 1885

Generally speaking, as the increase in US CPI raised the expectation that the Fed will increase the interest rate, XAUUSD is more likely to fall further. Investors should focus on US economic data and the interest rate decision by the ECB during the day.