Gold Price Analysis: XAU/USD bears hopeful below $1891 amid US election caution – Confluence Detector
The fate of gold (XAU/USD) hinges on the much-awaited outcome of the US Presidential election, which will determine the extent of the fiscal stimulus aid, as the country battles an intensifying second wave of the coronavirus.
A sweeping Blue-wave victory could likely be the best bet for the gold buyers. However. a contested outcome would reinforce the bearish momentum in the yellow metal. Therefore, a sense of caution will likely prevail in the markets in the lead up to the US election, underpinning the safe-haven dollar while keeping the upside attempts limited in gold. How is gold positioned technically?
The Chart of the Week: Gold and Silver, squeezing out the last drops?
In ongoing price analysis of the precious metals, gold, in particular, has been playing out as expected from a market structure perspective at least. As can be seen from prior analysis, Gold Price Analysis: Bears finally catch a break, the price has behaved according to expectations as illustrated in the following chart drawn on the 28th of October.
In the prior analysis, in anticipation of an eventful continuation of the bearish trend, it was stated that ”it is reasonable to expect a pullback to the prior support structures, which are now expected to act as resistance.”