FOREX Chart Of The Day: Gold Remains Subdued
The Election results are tighter than expected.
The blue wave hasn’t dominated as much as analysts expected and the US Election results continue to come in but how will this affect the price of Gold?
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update, with me John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at the price of gold. We will monitor the price of gold in the Forex Market Outlook. We spoke about the market’s potential to move lower, depending on the result of the election.
Now obviously, the results are still coming through at the moment. Biden is leading, and however, there are a few states where Trump could go through on, so it’s a very tight race.
We also spoke about the Australian Dollar yesterday and about the fact that the market is almost pricing-in.
That Biden victory, we’ve seen that reverse a little bit, and as the sort of election, the race is a little bit tight up and anticipated.
Unfortunately for us, there’s going to be no sort of outcome in this video. Unfortunately, we’re going to have to be a little bit patient and wait for some further moves. But essentially just updating you on what’s going with gold on at the moment.
The price is fluctuating between 19-16 down to 1872. So at the moment, the price is fluctuating around, this was an area we will look for short opportunities to come into play.
Just because we look at it from the technical point of view, the market broke down into new lows. Just pull back in, retesting this area of a structure, and the price looks to be finding a little bit of resistance.
Now, I think if the US Dollar does start to gain some value, which I expect to see if Trump came to power or re-elected as the US President, then I’m hoping the market to sell off here on gold in the short term.
We’re still looking for that seasonality play and price potentially coming into some support in areas. There’s a sizable weekly level around this 18 or 17 sort of 50 areas 1760, which I’ll take a look.
But, also, prices hanging around this area where we’re supported around about 1850. So we need to see some breakout. If we’re going to see that downside come into play, I’d expect to see this key-supporting zone taken out. And if that’s taken out, then there might be a possibility of shorting down into this weekly level, which we spoke about in the Forex Market Outlook.
Then you know, typically, we see on a post-election year the Dollar sell-off, and we could look for some long opportunities in gold back down at these levels.
So, it would be interesting to see how the rest of the election plays out. But right now, we are no further in knowing what’s going on at the moment, and Biden in the lead, but Trump could start to pull that back slightly.
There’s a bit of market indecision, and we need to see some confirmation and wait for that to happen. If you have any questions about the election, let me know in the comment section below. We’ll be looking for a little bit of US Dollar strength to come into play depending on who wins the elections, but looking for gold to dip a little bit further and potentially into these lows.
So thanks for watching, and I’ll speak to you soon.
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