Gold Price Analysis: XAU/USD snaps three-day uptrend to battle $1,900 amid mixed US election polls

Gold reverses from October 22 high as US dollar picks up bids.
Risks dwindle as the latest polls suggest tough race between Trump and Biden.
US stock futures, Asian shares shave off early gains, US bond yields slip from five-month high.

Anil Panchal FXStreet

Gold prices remain depressed recently, following the early-Asian rise to a two-week top, while taking rounds to $1,900 during Wednesday’s initial trading. While the US dollar weakness earlier favored the yellow metal buyers, the recent challenges to the risks, mainly emanating from the US 2020 presidential election, recall the greenback buyers and weigh on gold.

With the increasing odds of US President Donald Trump’s victory in Florida, as suggested by Fox News, global markets turn risk-averse off-late. The recent updates from the American election polls mark Trump’s opponent Joe Biden as a winner in Colorado while the House Republican leader Mitch McConnell’s re-election in Kentucky defied a blue wave hopes, a situation of major Democratic victory.

Check live updates: Four more years for Trump or a victory for Biden? – Live coverage

That said, S&P 500 Futures drop 0.17%, versus 1.0% initial gains, whereas US 10-year Treasury yields also take a U-turn from the early-June high probed before a few hours. Further, the US dollar index (DXY) snaps a three-day losing streak to gain 0.25% intraday by press time.

Given the Democratic victory considered favorable for markets, due to their stimulus-friendly nature, any further confirmation of Trump’s re-election could keep the risks heavy and weigh on the gold prices.

Technical analysis

50-day SMA near $1,914 keeps restricting gold’s short-term upside, which in turn pushes the sellers towards re-entry if the quote breaks the $1,894 level comprising 100-day SMA.

Additional important levels

Overview
Today last price	1903.88
Today Daily Change	-2.36
Today Daily Change %	-0.12%
Today daily open	1906.24

Trends
Daily SMA20	1900.62
Daily SMA50	1914.55
Daily SMA100	1893.12
Daily SMA200	1773.3

Levels
Previous Daily High	1910.64
Previous Daily Low	1887.12
Previous Weekly High	1911.46
Previous Weekly Low	1860
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1901.66
Daily Fibonacci 61.8%	1896.1
Daily Pivot Point S1	1892.03
Daily Pivot Point S2	1877.81
Daily Pivot Point S3	1868.51
Daily Pivot Point R1	1915.55
Daily Pivot Point R2	1924.85
Daily Pivot Point R3	1939.07

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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