The yellow metal built on last week’s positive climb, as investors become wary and are hedging their bets against the outcome of the US Presidential Election tomorrow.
Meanwhile, renewed lockdown measures across the globe over the resurgence of Coronavirus infections has dampened markets’ risk mood and has further bolstered demand for the precious metal. However, several other factors have placed a strong lid over any significant rally for gold in the near-term.
The global risk sentiment was modestly bolstered on Monday by the release of better-than-expected Chinese manufacturing PMI. The positive effect of this report was felt in the US equity market. Furthermore, the upbeat tone surrounding the US dollar (DXY) has further contributed to the slowdown of bullish gains in the dollar-denominated commodity.
Moving on, market participants will be looking at the US economic docket today—which features the release of the ISM Manufacturing PMI—for clues. Regardless, most investors will remain on the sidelines ahead of tomorrow’s elections.
Gold (XAU) Value Forecast — November 2
XAU/USD Major Bias: Bullish
Supply Levels: $1900, $1912 and $1923
Demand Levels: $1883, $1876, and $1860
Gold is now trading within an ascending triangle well ahead of the US session. Given the directional bias, we could expect the price to spike upwards when it approaches the end of this converging channel. The precious metal had a clean bounce from the $1860 support last week, following a decline from the $1900 support.
That said, we’re likely going to witness a less volatile session today as the markets brace for this week’s main event.
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.