Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Gold Price Eyes $1,910 Resistance as Election Uncertainty Drags on USD

Gold Price Eyes $1,910 Resistance as Election Uncertainty Drags on USD

Margaret Yang, CFA, Former Strategist


  • Gold prices ascends alongside a softening US Dollar, eyeing key resistance at US$ 1,910
  • Breaking above US$ 1,910 may open room for more upside towards US$ 1,942
  • A pullback from here may lead to another harmonic movement back to US$ US$ 1,872

Gold prices fluctuated at a key resistance level at US$ 1,910 after registering a decent gain on Monday. The US Dollar index fell to a two-week low of 93.44, underpinning precious metal prices. President Trump was reported to have been discharged from the hospital, though his health condition was closely scrutinized by market participants.

A falling US Dollar, alongside uncertainties surrounding the US presidential election may continue to serve as positive catalysts in the near term. The medium trend of gold prices, however, remains tilted to the downside as prices have formed consecutive ‘lower highs’ and ‘lower lows’ since early August (chart below).

Gold Forecast
Gold Forecast
Recommended by Margaret Yang, CFA
Get Your Free Gold Forecast
Get My Guide

Technically, gold prices have rebounded from their 100-day SMA (1,884), eyeing a push to key resistance at US$ 1,910 – the 61.8% Fibonacci retracement. A firm breakthrough above U$ 1,910 may open room for further upside towards the next resistance level at US$ 1,942 (50% Fibonacci retracement). A few harmonic swings were observed (chart below), showing a clear downtrend in the past two months. A failure to break above US$ 1,910 may result in another harmonic pullback towards the immediate support levels at US$ 1,872 and then US$ 1,810.

Gold PriceDaily Chart

In the near term, the outlook of gold largely depends on the direction of the US Dollar due to their negative correlation over the past 12 months (chart below). Similarly, silver prices are also trailing behind gold, challenging a resistance level at US$ 24.50.

From a long-term perspective, however, gold prices appeared to have entered a consolidation phase within a mega bull trend, with a major support level at around US$ 1,800. The macro-environment (ultra-low interest rates, QE and fiscal stimulus) remains accommodative to gold prices, albeit a short-term pullback is underway.

Gold Prices vs. US Dollar Index – Past 12 Months

Please add a description for the image.

IG Client Sentiment indicates that gold traders are heavily leaning towards the long side, with 74% of positions net long, while 26% net short. As gold prices climbed, retail traders significantly increased their short positions (+35%) overnight and trimmed long (-7%) exposure. Compared to a week ago, traders have added to shorts (+39%) while reducing long (-13%) positions.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Margaret Yang, CFA
Don’t give into despair, make a game plan
Get My Guide

--- Written by Margaret Yang, Strategist for

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.