Gold Sell Setup Active Below $4170 as KDJ and MACD Death Crosses Target $4000

XAUUSD plummeted by 4%

On Monday, XAUUSD plummeted by 4%. At one point, it hit US$4110, the lowest level since 5^th August.

The expectation that the Fed will increase the interest rate rose

Officials at the Fed released hawkish statements recently, warning that the inflationary risk is still at a high level and the interest rate may further rise. The probability that the Fed will increase the interest rate by the end of the year exceeded 90%, according to the CME’s FedWatch.

The USDX was prone to fluctuation and climbed

On Monday, as oil price increase triggered concerns on inflation again, the USDX was prone to fluctuation and climbed. It ended up 0.16% at 101.19.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, XAUUSD fell sharply. The bearish market trend prevailed in the short term. 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 4065. It will decline further with potential support at 4000 if it breaks below 4065.

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 XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the resistance at 4170. It will dip if it rebounds but is capped at 4170.

Key resistance: 4170,4200

Key support: 4065,4000

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