Gold is continuing its slow recovery. In a scenario which has turned again to risk on, investors have still bought gold, bringing the price close to $1,900. All eyes are focused on the US election, trying to anticipate the next market movements in all sectors.
From a technical point of view, literally nothing has changed. We have seen in the last couple of days a rebound from the low of $1,860, but we are still in the major lateral trading range between $1,850 and $2,070. Looking closer, the price is now on a slow dance in the lower part, between $1,860 and $1,930, which is the first real resistance level for bullion. The presidential election will spark increased volatility and traders need to be ready for sharp and fast price moves when the new US president is announced.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Share markets edged higher across the world ahead of the US presidential election. Despite the sharp price moves around major support levels, investors expect more and more market volatility as we get closer to Wednesday morning, where the first clues on the outcome of the election should be available. Meanwhile, rebounds on equity markets may also be the sign that investors, after having already anticipated the latest lockdowns measures in Europe, now have their eyes towards the end of the crisis, just like happened in late March. Last week’s sell off have made share prices much more attractive for an investor who is already pricing the recovery. However, this trading stance may be disturbed by this week’s major events as investors will need to keep their attention on the latest monetary policy decision from the Fed on Thursday as well as the October US jobs report on Friday.
Independent writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.