Gold Price Prediction: XAU/USD massive rally to 2,000 seems imminent as election tension cools down


  • Gold is on the verge of a rally to 2,000, especially if the US election tension spills into next week.
  • Support at 1,950 is key to ensuring that buyers keep their eyes on the ultimate prize, 2,000.

Gold rallied significantly this week amid tension regarding the United States 2020 presidential election. The precious metal closed the week at 1,952, the highest level since September. Price action above 1,900 was attributed to the market's anxiety as investors took positions to hedge against the expected volatility in the stock market. Most analysts believed that if Biden wins, the stock market was bound to crash.

At the moment, the election is leaning towards Biden, who proclaimed earlier on Saturday that the Democrats would ace this race. However, it is too soon to call the election in his favor, as several states are yet to release the final results. On the other hand, some states are contemplating recounting the votes.

It seems that the following week would also be an action-packed one for gold as it is likely to continue gaining ground against the USD. The daily chart illustrates how XAU/USD recently broke out of a descending wedge, elevating the price above the 100 Simple Moving Average and the 50 SMA.

Potential support at 1,950 will play a key role in ensuring that bulls remain focused on higher levels, such as 2,000. The Relative Strength Index implies that odds will still be in favor of the bulls come Monday.

XAU/USD daily chart

XAU/USD daily chart

It is worth mentioning that gold's bullish outlook will be invalidated if the support anticipated at 1,950 fails to hold. On the downside, the immediate contact would be the 50-day SMA, but if declines extend, 1,900 could be retested before gold rebounds.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD gains traction and climbs above 1.1600 after US data

After dropping below 1.1600 earlier in the day, EUR/USD managed to stage a recovery in the early American session toward 1.1620 with the latest data releases from the US making it difficult for the greenback to find demand. US trade deficit expanded in September and durable goods orders contracted. 

EUR/USD News

GBP/USD stays in the negative territory around mid-1.3700s

GBP/USD recovered modestly from the weekly low it set at 1.3710 earlier in the day but continues to trade in the negative territory around 1.3750. The dollar is staying on the back foot after the latest data releases but the cautious mood is limiting the pair's upside.

GBP/USD News

XAU/USD inches closer to $1,800 amid sliding bond yields/weaker USD

Gold attracted some dip-buying for the second successive day on Wednesday. Retreating US bond yields, weaker USD acted as a tailwind for the commodity. Hawkish central bank expectations might continue to cap gains for the metal.

Gold News

Shiba Inu price to provide buy opportunity before SHIB doubles again

Shiba Inu price is due for a retracement after rallying 113% in less than three days. The MRI displays a major sell signal, hinting at a correction that could extend 17%.

Read more

Wake Up Wall Street: Microsoft, McDonald's lead futures higher

McDonald's (MCD) quarterly earnings came in before the market opens on Wednesday and delighted on both top and bottom lines. Microsoft reported easy beats on revenue and EPS as well.

Read more

Forex MAJORS

Cryptocurrencies

Signatures