US elections could be a new wave, should gold be sold or bought?
Gold returned to a higher position yesterday in US trading hours after hitting a low of between 1920 and 1930. Claims for the unemployed worse than expected pushed prices higher. Gold rose to 1,966 and continued to trade between 1945 and 1950. In Asia, it closed today at around 1,940, creating a medium-term downtrend. Interest is now focused on the evolution of vaccines, and the debate over the US general election could also send another wave to markets sooner or later.
Technically, the 4-hour chart (H4) for gold looks bearish, as indicated by the three bearish signs. The new trend line is showing the price of gold, falling from the high of 1924.71 or 1917.20, the support line when reaching this price is expected to recover. The next target to look at is if the downtrend closes sharply on both uptrend lines, the price could take the upside from that point.
May reach the expectation of a recovery from that price. The next target to watch in case if a pull back to close sharply on the two uptrend line is likely to occupy the market from then on.