Technical Analysis: XAUUSD

XAUUSD surged by about 3%

On Monday, XAUUSD surged by about 3% and broke above the US$4100 mark, reaching the highest level since 24^th October.

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

As economic data was weak, the expectation that the Fed will cut the interest rate in December rose. The probability that the Fed will cut the interest rate by 25 basis points in December is 66.5%, and the probability that the Fed will keep the interest rate unchanged hits 33.5%, according to the CME’s FedWatch.

Gold ETF holdings were kept unchanged

As of the 10^th November, gold ETF holdings were kept unchanged at 1042.06 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 4160. It will rise with potential resistance at 4220 if it breaks above 4160.

4-hour chart

On the 4-hour chart, XAUUSD continued rising. The bullish market trend prevailed. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that the bullish market trend prevailed. Investors should focus on whether XAUUSD will break through the support at 4115. It will jump if it retreats but is stable above 4115.

Key resistance: 4160,4220

Key support: 4115,4070

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