Gold Eases as Investors De-Risk Ahead of U.S. Election
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Gold prices dropped significantly as markets de-risk ahead of the U.S. election. Last week’s stronger-than-expected U.S. economic data, coupled with expectations for the Federal Reserve's easing cycle, has created mixed signals for gold. Technical analysis across daily, 4-hour, and 1-hour timeframes shows potential levels for buyers and sellers to watch, as key U.S. economic events unfold this week.
Gold’s Technical Landscape Ahead of Election Volatility
Fundamental Overview
Gold has retraced recent gains, driven by risk-off sentiment as the U.S. election approaches. Last week’s U.S. Core PCE data and Jobless Claims report painted a positive economic outlook, with signs of economic activity picking up. While the Fed’s easing policy continues to support a longer-term bullish trend in gold, near-term pullbacks are likely as markets reassess rate cut expectations. A Trump victory, especially a Republican sweep, may increase real yields on growth expectations and reduce rate-cut anticipation, potentially pushing gold prices lower.
Daily Timeframe Analysis
The daily chart shows gold falling from its recent highs, likely due to pre-election de-risking. Buyers may look to enter at the key trendline support for favorable risk-to-reward setups. Meanwhile, sellers could gain confidence if prices break below this trendline, targeting new lows.
4-Hour Timeframe Analysis
On the 4-hour chart, gold has broken below a minor upward trendline, signaling potential for a deeper pullback. After retesting former support, now resistance, the price retreated to recent lows. Sellers may now target the main upward trendline as buyers wait for a move above 2760 to resume bullish momentum.
1-Hour Timeframe Analysis
The 1-hour chart shows a support level around 2730. Sellers would likely increase their bearish positions if this level breaks, aiming for the major trendline, while buyers may lean on the support for positioning towards a breakout above 2760.
Upcoming Catalysts
Key U.S. events this week, including the ISM Services PMI, Jobless Claims, FOMC Policy Decision, and Consumer Sentiment report, are expected to influence gold prices and add further volatility around the U.S. election results.
Gold’s Technical Landscape Ahead of Election Volatility
Fundamental Overview
Gold has retraced recent gains, driven by risk-off sentiment as the U.S. election approaches. Last week’s U.S. Core PCE data and Jobless Claims report painted a positive economic outlook, with signs of economic activity picking up. While the Fed’s easing policy continues to support a longer-term bullish trend in gold, near-term pullbacks are likely as markets reassess rate cut expectations. A Trump victory, especially a Republican sweep, may increase real yields on growth expectations and reduce rate-cut anticipation, potentially pushing gold prices lower.
Daily Timeframe Analysis
The daily chart shows gold falling from its recent highs, likely due to pre-election de-risking. Buyers may look to enter at the key trendline support for favorable risk-to-reward setups. Meanwhile, sellers could gain confidence if prices break below this trendline, targeting new lows.
4-Hour Timeframe Analysis
On the 4-hour chart, gold has broken below a minor upward trendline, signaling potential for a deeper pullback. After retesting former support, now resistance, the price retreated to recent lows. Sellers may now target the main upward trendline as buyers wait for a move above 2760 to resume bullish momentum.
1-Hour Timeframe Analysis
The 1-hour chart shows a support level around 2730. Sellers would likely increase their bearish positions if this level breaks, aiming for the major trendline, while buyers may lean on the support for positioning towards a breakout above 2760.
Upcoming Catalysts
Key U.S. events this week, including the ISM Services PMI, Jobless Claims, FOMC Policy Decision, and Consumer Sentiment report, are expected to influence gold prices and add further volatility around the U.S. election results.