Technical Analysis: XAUUSD

XAUUSD climbed slightly

On Tuesday, boosted by the expectation that the Fed will cut the interest rate, XAUUSD increased by 0.24%.

The expectation that the Fed will reduce the interest rate rose

The US economy and the US labor market will be at risky if the Fed cut the interest rate for fewer times or too late, according to the testimony for the Senate hearing prepared by the Fed Governor Powell on Tuesday. Traders expected that the probability that the Fed will reduce the interest rate in September is higher than 70%.

Assets have flown into Global gold ETF for the second straight month

Assets have flown into Global gold ETF for two consecutive months, the analysts at the World Gold Council said on Tuesday. It is reported that global gold reserves increased by 17.5 tons last month, with the market value of US$1.4 billion.

Technically speaking, the bullish market trend prevailed

the Chart of the Day

On the chart of the day, XAUUSD was prone to fluctuation and climbed. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, showing XAUUSD will rise further. Investors should pay close attention to whether XAUUSD will break through the resistance at 2376. It will jump further with potential resistance at 2390 if it breaks above the resistance at 2376.

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 the market trend is bullish. Investors should focus on whether XAUUSD will break through the support at 2346. It will rise further if it retreats but is stable above 2346.

Key resistance: 2376,2390

Key support: 2346,2335

Generally speaking, as the Fed governor raised the expectation that the Fed will cut the interest rate, XAUUSD is more likely to rise further in the short term. Investors should focus on US June inflation during the day.