Categories: Market Overview

Gold retreat to test major trend support

Gold lost over 3% in value on the day the presidential election results were tallied. Cumulatively, from its peak in late October to its most recent low, the losses exceed 5%. So far, it doesn’t look like a tragedy. Gold is just blowing off steam after more than 50% gains from the lows of last October. We attribute the price decline to the fact that a lot of capital parked in gold got involved in the game after the pre-election uncertainty.

Technically, there is a test of an important support line at the 50-day moving average of $2,640. A failure below it will signal the start of a deeper correction to the $2,400 area. A sharp return to growth will allow us to talk about the imminent renewal of historical highs. The latter is a realistic but alternative scenario. It seems to us that now it is more likely that gold will leave the top role for a while.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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Tags: gold

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