Technical Analysis: XAUUSD

XAUUSD surged by about 2%

On Monday, XAUUSD surged by about 2%. At one point, it came close to the US$4140 mark, reaching the highest level since 14^th November.

The expectation that the Fed will cut the interest rate in December rose

Many officials at the Fed have made dovish statements in the past few days, which raised the expectation that the Fed will reduce the interest rate in December.

The US interest rate may fall in the short term, but it will not endanger the inflation target of 2%, the New York Fed Governor John C. Williams said last Friday. The necessity for December interest rate cut is rising because there is a signal that the US labor market is weakening, the San Francisco Fed Governor Mary C. Daly noted on Monday. In addition, the Fed member Christopher J. Waller supported the Fed reducing the interest rate in December because the labor market is weak.

Gold ETF holdings increased

As of 24^th November, gold holdings increased by 0.29 tons to 1040.86 tons, according to the data from the world’s largest Gold ETF——SPDR Gold Trust.

The bullish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, XAUUSD increased steadily. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing that XAUUSD will rise further. Investors should focus on whether XAUUSD will break through the resistance at 4170. It will climb with with potential resistance at 4245 if it breaks above 4170.

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, MACD 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 4100. It will jump if it retreats but is stable above 4100.

Key resistance: 4170,4245

Key support: 4100,4040

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