Current trend

This week, gold is trading within a limited price range in anticipation of the results of elections in the United States.

Today, US citizens elect members of the US Senate and members of the House of Representatives. At the moment, investors’ confidence in the victory of Republicans in the Congress and House of Representatives is growing. If the forecasts come true, precious metals will significantly decrease.

In addition, the instrument is under pressure of positive US labor market reports of the last week, due to which the possibility of a gradual tightening of monetary policy in the coming months rises. Increasing the key rate and growth of bonds’ yields will lead to a decrease in demand for gold.

Support and resistance

On the 4-hour chart, the instrument is growing from a key support of 1231.00. Bollinger bands are directed horizontally, and the price range has narrowed, indicating a reversal of the upward trend into a downward one during the day. MACD histogram is in the positive zone, keeping a weak buy signal. Stochastic is approaching the overbought area from below, a signal for opening positions is not formed.

Resistance levels: 1236.11, 1238.63, 1243.28.

Support levels: 1231.00, 1226.86, 1223.36, 1218.05, 1212.08, 1207.87, 1204.33.

Trading tips

Short positions can be opened from the current level with the targets at 1223.36, 1218.05 and stop loss 1238.00.

Long positions can be opened above the level of 1239.05 with the target at 1243.50 and stop loss 1237.00.

Implementation period: 1–3 days.

Spot Gold

BuySellSpread
1215.111214.5160

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1233.56
Take Profit1223.36, 1218.05
Stop Loss1238.00
Support levels1204.33, 1207.87, 1212.08, 1218.05, 1223.36, 1226.86, 1231.00, 1236.11, 1238.63, 1243.28

Alternative scenario

RecommendationsBUY STOP
Entry Point1239.10
Take Profit1243.50
Stop Loss1237.00
Support levels1204.33, 1207.87, 1212.08, 1218.05, 1223.36, 1226.86, 1231.00, 1236.11, 1238.63, 1243.28
XAU/USD: general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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