Lingrid | GOLD Pre-Election Weekly MARKET AnalysisOANDA:XAUUSD market recently bounced off a resistance zone, making a impulse move lower. The last time the market approached the psychological 2700 level, it reached 2685 and then bounced off the resistance zone, spending over three weeks in a sideways move before eventually hitting 2700. With the recent bounce off the resistance zone at 2787, it seems likely that the market could remain in a consolidation zone for now.
With the overall trend being bullish, any pullback could present an opportunity to enter long positions. However, it is important to consider that this upcoming week is an election week, which could lead to unexpected market reactions. Historically, the gold market has seen corrections after every election since 2012, and it is possible that we may see a similar pattern this time around, especially given that there has not been a red month since March. This scenario suggests that the market could spend another couple of weeks moving lower towards the October lows.
On the weekly chart, we also see a long-tailed bar, indicating a potential retest of the 2650 support zone if the price breaks and closes below the previous week's low. With the upcoming presidential election and federal funds rate announcements, it is important to remain vigilant and be prepared for increased volatility and potential market corrections.
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