On the other hand, gold (XAU) and silver (XAG) found support and progress after Wednesday’s decline. Following the Fed’s rate cut, gold prices rose, with the metal trading above $2,700. Investors are turning to gold as a hedge against economic uncertainty and dollar fluctuations. The bullish momentum in gold reflects its safe-haven appeal, especially as the dollar’s strength shows signs of tapering. Gold’s upward trajectory could continue if concerns about inflation and global economic risks persist, potentially driving more investors toward this traditional asset in an unstable market. The upcoming Michigan Consumer Sentiment Index data will continue to drive gold and silver.
Gold (XAU) Technical Analysis
Gold Daily Chart – Bullish Hammer Rising Widening Wedge
The daily chart for gold shows that Trump’s victory led to a significant price decline, pushing the price below the strong support at $2,690 and reaching the 50 SMA around $2,650. The price then recovered from the 50 SMA and showed strong volatility.
This correction following Trump’s victory sets the stage for a potential rally in the gold market. Gold is trading within a rising, widening wedge and appears poised for an upward rally once the correction is complete. The Thursday candle indicates a bullish hammer, indicating a continuation of an uptrend.