Gold outlook: Bulls remain firmly in play on geopolitical and US election uncertainty

Slobodan Drvenica Windsor Brokers

Gold

Gold keeps firm tone, and trading just ticks under new record high posted last week, supported by strong safe haven demand on persisting geopolitical tensions and growing uncertainty surrounding US presidential election.

Markets await release of US labor data and signals from Fed about the dynamics in handling the monetary policy.

Friday’s NFP report, Nov 5 presidential election day and Fed interest rate decision on Nov 7 will be closely watched.

Although the narrative about Fed’s policy easing has changed and points to smaller rate cuts (25 basis points) on better than expected recent economic data from the US, gold bulls are unlikely to significantly lose traction, and strong bullish sentiment is expected remain in play.

Immediate bias is expected to remain firmly with bulls while the price action stays above rising 10DMA ($2724) for acceleration towards targets at $2768, $2800 and $2819 (Fibo projections / round-figure).

Deeper dips should find ground above $2700/$2685 zone (psychological / former top / 20DMA).

Res: 2758; 2768; 2800; 2819.
Sup: 2736; 2724; 2708; 2700.

Interested in XAU/USD technicals? Check out the key levels

1. R3 2774.35
2. R2 2760.89
3. R1 2751.68
PP 2738.22
1. S1 2729.01
2. S2 2715.55
3. S3 2706.34

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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