As the US goes into polls – Will Gold extend correction to $2,696 or break above $2,790?
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As the US presidential polls begin, traders look for clues about Gold's further course of price action.
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$2750 and $2760 may act as near-term resistance.
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$2715 and $2696 may act as near-term support.
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Volatility to increase ahead of poll results trigerred by widespread speculations.
Gold trades sideways after traders maintain caution on the resistance zone $2745-$2750 while bears unsure at the moment to break below $2730.
If buyers step in with sizeable intervention, some gains towards $2750 can hardly be ruled out while next resistance sits at $2760.
On the downside, 4 hourly 100 SMA $2719 sits as immediate support, failing which next leg lower could be seen at $2696.
Break below $2696 is likely to be a call for extended correction over the short term which may expose more decline ahead.
Author
Sunil Kumar Dixit
SK Charting
Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.
