By RoboForex Analytical Department
Gold prices tumbled over 3% to 2650 USD per troy ounce amid a surging US dollar, influenced by Donald Trump’s definitive win in the US presidential election. As of Thursday, gold prices are holding steady near three-week lows, reflecting ongoing pressure from a robust dollar.
Market anticipation has shifted, with investors expecting a more conservative approach from the Federal Reserve to interest rate cuts. Trump’s victory, perceived as pro-inflation due to his protectionist policies, could prompt the Fed to maintain higher lending rates to counter potential inflation spikes, diminishing the appeal of non-yielding assets like Gold.
Today’s focus is squarely on the Fed’s interest rate decision, which is anticipated to bring a 25-basis-point cut. This has been priced into the market, influencing the current Gold prices.
Gold’s future movements will hinge heavily on the Fed’s commentary and subsequent rate decisions. While rates are projected to decrease, the pace and extent of these cuts will be critical for Gold’s appeal.
Technical analysis of XAUUSD
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Gold’s market dynamics recently peaked at 2790.00, after which a consolidation range formed below this level. Exiting this range downward opened the pathway for a significant correction, with Gold forming its initial corrective wave. The immediate downside target is 2617.40, potentially extending to 2575.75 if the downward trajectory persists. The MACD indicator supports this bearish outlook, with its signal line trending sharply downward below zero, suggesting further declines.
The hourly chart outlines a developing downward wave aiming for 2635.65. Should this target be met, a corrective rally to 2683.11 could occur before further declines resume towards 2617.17, marking the primary target in this bearish phase. The Stochastic oscillator indicates potential for short-term upside, with its signal line approaching the 80 level, suggesting a brief corrective uptick before continuing its descent.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- Gold Retreats as Trump Victory Bolsters USD Nov 7, 2024
- USDJPY Hits 14-Week High Amid US Election Dynamics Nov 6, 2024
- EURUSD Stabilises as US Presidential Election Unfolds Nov 5, 2024
- Stock indices rise on weak US labor market report. In Switzerland, there is a further decline in inflation Nov 4, 2024
- US Elections: How might markets react to Harris or Trump win? Nov 4, 2024
- Brent Crude Rises as OPEC+ Delays Production Increase Nov 4, 2024
- COT Metals Charts: Speculator bets led by Palladium & Steel Nov 3, 2024
- COT Bonds Charts: Speculator Bets led by Ultra Treasury Bonds & US Treasury Bonds Nov 3, 2024
- COT Soft Commodities Charts: Speculator Bets led by Corn & Live Cattle Nov 3, 2024
- COT Stock Market Charts: Speculator Bets led by S&P500 & Nasdaq Minis Nov 3, 2024