Talking Points:
- Gold Price Tests Support Ahead of Election Results
- Election Results May Cause a Shift in Golds Daily Trend
- Looking for additional trade ideas for Gold & Commodities? Read Our Market Forecast
Gold prices continue to fall this afternoon, ahead of today’s U.S presidential election. From yesterday’s high of $1,304.20, the metal has now declined as much as $31.16 over the fits two trading sessions of the week. This move should be seen as significant as Gold prices had previously advanced for 6 consecutive trading days. With this abrupt change in direction, traders should continue to monitor the price of Gold as election results poor in and present event risk for the metal.
Technically, Gold is currently trading near an important long term value of support. This point is denoted in the graph below as 200 day SMA (simple moving average) and is found at a price of $1,278.62. This point is interesting graphically, as a move below this point may suggest a turn in Gold’s 2016 trend. So far for the 2016 trading year gold has advanced as much as $313.33, hover this trend has been slowly waning with prices declining over the last 4 months.
Gold Price, Daily Trend with SMA
(Created Using TradingView Charts)
In the short term traders may look for next support at the displayed S4 Camarilla pivot, found at a price of $1,271.64. A move below this value would have serious implications towards a deeper decline as Gold prices would be breaking out to new daily lows. In the event that Gold prices rally, traders may look for the metal to bounce back above the S4 pivot at $1,276.43. A move to this point would technically place Gold in a range for the session. In this scenario, traders may look for Gold prices to retest resistance found near $1,286.13.
It should be noted that at this point, that Gold prices have failed to mount any significant bullish momentum for the trading day. However in the event of election news spiking the commodity, bullish breakouts may begin above $1290.95. A move of this nature would place the price of Gold back above the Daily 200 period SMA, and would suggest that a resumption of the previous bull trend may be in order.
Gold Price, 30 Minute with Support & Resistance.
(Created Using TradingView Charts)
--- Written by Walker, Analyst for DailyFX.com
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