Are you keeping an eye on the gold market? If so, you’ll want to pay attention to some key technical indicators that could signal a shift in the market’s direction. Our experts at Extreme Investor Network have been closely monitoring gold’s weekly technicals, and they reveal a potentially bearish closing price reversal top. This pattern suggests a possible short-term pullback, with $2,724.75 as a key support level to watch. If this level is decisively broken, we could see a correction testing $2,697.28 and potentially even further downside to $2,604.39, which could shift the main trend to bearish.
But that’s not all – there are some major events on the horizon that could also impact gold prices. With the U.S. presidential election scheduled for Tuesday and the Federal Reserve’s rate decision on Wednesday, markets are in for a turbulent week. The Fed is expected to cut rates by 25 basis points, which could support gold prices as lower interest rates make gold more appealing. Additionally, uncertainty surrounding the election outcome is driving safe-haven demand for gold, particularly with polls showing a close race.
Looking ahead, our market forecast suggests a bearish bias with volatility expected. Traders are closely watching to see if gold can hold above $2,724.75, as a break below this level could confirm the bearish reversal and trigger a broader correction. On the other hand, a successful hold could lead to consolidation and potential gains depending on the Fed’s decision and election results.
In conclusion, while election risks and rate cut expectations may support gold’s longer-term outlook, near-term indicators are signalling caution. With volatility anticipated from the election and Fed meeting, traders should be prepared for potential swings and keep critical levels in mind for well-timed entries and exits. Stay tuned to Extreme Investor Network for the latest updates and insights on the gold market.