XAU/USD Analysis: Trump’s Potential Win Boosts Wall Street, Impact on Gold Prices
- Wall Street rebounds as speculation grows over a potential Trump victory in the US elections.
- Investors cautious ahead of upcoming US economic data releases.
- XAU/USD facing selling pressure, support at $2,377.10.
Spot Gold, represented by XAU/USD, is currently trading at $2,392.80 after hitting a record high of $2,483.63 last week. The US Dollar has gained strength as Wall Street recovers from recent losses, fueled by optimism surrounding a possible Trump presidency.
Despite political uncertainty, President Biden’s decision to withdraw from the race has shifted market sentiment towards a more “pro-market” outlook under a potential Trump administration.
Looking ahead, key US economic data releases such as Q2 GDP estimates and inflation figures will influence market movements this week. Investors are closely monitoring these reports for clues on the future direction of the economy.
XAU/USD Technical Outlook
The XAU/USD pair is currently in a corrective phase, with support at $2,377.10. The daily chart shows a bullish trend supported by moving averages, indicating a potential reversal in the near term. Technical indicators suggest a possible end to the downward trend.
On the 4-hour chart, XAU/USD remains under selling pressure, with resistance at $2,412.10. The 20 SMA is bearish, while the 100 SMA provides some support. Technical indicators signal oversold conditions, but a reversal is not yet confirmed.
Support Levels: $2,377.10, $2,364.00, $2,349.50
Resistance Levels: $2,412.10, $2,425.70, $2,439.90
Analysis:
The current market dynamics suggest that a potential Trump victory in the upcoming US elections could impact gold prices. Investors are closely watching economic data releases for clues on market direction. Technical indicators point to a possible reversal in the near term, but selling pressure remains a key factor to consider. Support and resistance levels provide guidance for traders looking to capitalize on market movements.