GOLD - USD - Gold’s weakness continues but $2,550 is an important support - 11/15/2024 (GMT)

Gold was definitely overheated before the elections, so a retracement sooner or later had seemed probable anyway, but this received fuel from the generally clear win by Republicans in the elections. With sentiment on the dollar, major shares and major cryptocurrencies particularly bitcoin currently strong, volume of buying for gold is lower and the sellers seem to be in control for now.

However, the 100% monthly Fibonacci extension around $2,550 suggests that this area could be an important support. 14 November’s downward movement was rejected around this zone. Although buying volume has decreased significantly compared to most of the third quarter, the volume of selling hasn’t increased notably. Clear oversold signals from Bollinger Bands and the slow stochastic might suggest a pause and possible consolidation or bounce, but this depends on volumes and the dollar’s performance.

There’s no very major data or scheduled news from the USA until 26-27 November, so technical action and sentiment are likely to dominate until then. If the price can break through $2,550, $2,500 would probably be the next strong static support, followed by the 200 SMA as a dynamic one around $2,470.

This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.