Gold’s weekly technical data reveals a potentially bearish close reversal top, with a higher high and a lower close for the week. This pattern signals a possible near-term pullback, with traders seeing $2,724.75 as the key support. A decisive break below this level could confirm the reversal, triggering a correction that could test $2,697.28. On the further downside, gold could reach the next key support at $2,604.39, which if broken could shift the main trend to bearish.
Major events ahead: US elections and Fed decision in pictures
The coming week brings high-stakes events, with the US presidential election on Tuesday and the Federal Reserve’s interest rate decision on Wednesday. With markets now pricing in a 25 basis point cut, the Fed’s decision could support gold prices if confirmed, as falling interest rates make gold more attractive. Meanwhile, uncertainty over the election outcome is fueling demand for gold as a safe haven, especially as polls show a tight race.
Market forecast: bearish bias with expected volatility
With gold holding at around $2,724.75, traders are keeping a close eye on whether this level holds. A break below could confirm the bearish reversal, potentially triggering a broader correction. Conversely, if support continues, gold could consolidate, with the potential for renewed gains depending on the Fed’s decision and election results.
In summary, while election risks and interest rate cut expectations could support gold’s long-term outlook, short-term indicators call for caution. With volatility expected following Tuesday’s election and Wednesday’s Fed meeting, traders should prepare for potential swings, keeping critical levels in mind for well-timed entries and exits.