Technical Analysis: XAUUSD

XAUUSD hit a two-month low

On Wednesday, XAUUSD decreased by more than 1%. At one point, it came close to the US$4400 mark and hit a two-month low.

Officials at the Fed released hawkish statements

The Fed member Cook hinted recently that it is appropriate to keep the interest rate unchanged, adding that the interest rate will be raised if necessary.

Gold ETF holdings were kept unchanged

As of 27^th May, gold ETF holdings stayed the same at 1034.853 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 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 XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the support at 4350. It will fall with potential support at 4300 if it breaks below 4350.

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, 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 4450. It will dip if it rebounds but is capped at 4450.

Key resistance: 4450, 4490

Key support: 4350, 4300

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