Spot Gold Reaches Record High Amid US Election Uncertainty
As the US presidential election approaches, the XAU/USD pair faces volatility and uncertainty. Here’s a breakdown of the current market conditions:
Factors Driving Market Volatility
- Rising US Treasury Yields: The US Dollar gains support as Treasury yields rise, impacting the XAU/USD pair.
- Tight Election Polls: Vice President Harris and former President Trump are in a close race, adding to market uncertainty.
- Risk-Averse Market Sentiment: Global stocks are under pressure, with tech shares leading the slide.
Spot Gold hit a record high at $2,758.36 before pulling back to around $2,720 as the US Dollar gains strength. The upcoming US election adds to market jitters, with no clear frontrunner in sight.
With Treasury yields on the rise, the 10-year note offers 4.26% and the 2-year note yields 4.06%, levels not seen since July.
Technical Analysis of XAU/USD
The XAU/USD pair is currently testing the 23.6% Fibonacci retracement level at $2,721.20. Here’s a breakdown of the technical indicators:
- Daily Chart: RSI and Momentum indicators suggest a potential downward move, with key support levels at $2,708.50 and $2,698.60.
- 4-Hour Chart: Indicators point towards a near-term downward continuation, with dynamic resistance at $2,732.70.
Support and Resistance Levels
Support levels: $2,708.50, $2,698.60, $2,680.10
Resistance levels: $2,732.70, $2,744.10, $2,758.40
Stay informed and monitor market developments closely to navigate the XAU/USD pair amid election uncertainty.