Technical Analysis: XAUUSD

XAUUSD fell 1%

On Monday, XAUUSD fell more than $30 from its intraday-high. It ended down 1.02% at $2,662.51 per ounce.

The USDX hit a new high in more than two years

On Monday, the USDX once rushed above the 110 mark during the session, hitting a new high since November 2022.

Gold ETF holdings declined

‌As of January 13, 2025, the world's largest gold ETF, SPDR Gold Trust, held 874.53 tons of gold, a decrease of 2.29 tons from the previous trading day

Technically speaking, there is a need for a correction in the short term

the Chart of the Day 

On the chart of the day, XAUUSD closed down significantly yesterday, and there is a need for a correction in the short term. In terms of technical indicators, KDJ fell after the death cross, showing XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the support at 2655. It will fall further with potential support at 2639 if it breaks below 2655.

4-hour chart

On the 4-hour chart, XAUUSD fell from highs. The bearish market trend prevailed. In terms of technical indicators, MACD fell after the death cross, showing that the market trend is bearish. Investors should focus on whether XAUUSD will break through the resistance at 2680. It will fall further if it rebounds but is capped at 2680.

Key resistance: 2680,2698

Key support: 2655,2639

Generally speaking, XAUUSD is more likely to correct in the short term. Investors should focus on the US PPI data during the day.