XAUUSD - The downtrend is not over yet!Today, the world gold price recorded a slight decrease. This precious metal reached about 2,737 USD/ounce and has not fluctuated much since the beginning of the week.
Regarding the influencing factors:
- Gold prices increased slightly due to the demand for safe haven capital, when the whole market is anxiously waiting for the results of the US presidential election.
- However, the gold price increase has slowed down somewhat when US stocks increased very strongly. The Dow Jones index increased by 427 points, Nasdaq increased by 259 points and S&P 500 increased by 70 points. Many people have invested in stocks, causing the cash flow into the gold market to slow down. Gold prices no longer have the momentum to accelerate.
Regarding the new outlook for XAUUSD:
As we can see on the 1-hour chart of XAUUSD, we can see that the current price tends to move sideways around 2,730 - 2,757 USD. Meanwhile, the breakout from the previous bullish trendline is forming strong resistance nearby, suggesting that this could be a key resistance zone for any upside move. If the price breaks below the $2,730 support zone, further downside is likely near $2,700.