Gold Nears $2,700 on Election Uncertainty
The price of gold continues its bullish run, nearing $2,700 per ounce due to uncertainty surrounding the U.S. elections, despite the strength of the dollar and rising Treasury yields. Political uncertainty is increasing demand for the precious metal, considered a safe haven, as polls show a tight race. Additionally, the recent decision by the ECB to cut interest rates temporarily strengthened the dollar, but this has not prevented gold from maintaining its positive momentum. Better-than-expected economic data in the U.S., such as increased retail sales and the Philadelphia Manufacturing Index, also supported the dollar, but these factors were not enough to reverse gold’s trend. From a technical standpoint, moving averages, particularly the 20-day SMA around $2,649.50, continue to provide support to the bullish trend, while the 100-day and 200-day SMAs remain far below, confirming persistent buyer interest. Technical indicators suggest further upside, though minor short-term corrections may occur, potentially offering new buying opportunities.
Note
The gold rally seems unstoppable, with the price showing no signs of weakness and about to reach a Fibonacci expansion of 2. Scenario 1: the price reaches the 2770 level before pulling back. Scenario 2: the price pulls back at the beginning of the week towards 2660. However, at the moment, Scenario 1 is prevailing as there are no signs of a pullback.
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