On Tuesday (October 29th), during the Asian market session, spot gold suddenly surged sharply in the short term, with the gold price just touching $2,757.74 per ounce, setting a new high for the day and approaching the previous historical high.
Bednarik wrote that gold prices are consolidating near historical highs, currently maintaining a bullish inclination.
Last Wednesday, the spot gold price set a record high of $2,758.45 per ounce.
On Monday, spot gold opened significantly lower, and in the early Asian session, the gold price once fell below $2,725 per ounce; however, the gold price recovered most of the day's losses, and by the end of the day, the gold price rose back above $2,740 per ounce.
As of Monday's close, spot gold was reported at $2,742.05 per ounce, with a daily decline of nearly 0.2%; the lowest point during the gold price was $2,724.64 per ounce.
TD Securities commodity strategist Daniel Ghali believes that gold prices will definitely reach $2,800 per ounce this week. Ghali said: "Our expectation is that the election will actually suppress the market's willingness to sell gold, so any factor that stimulates buying activity could have a greater impact."
Analyst Rhona O'Connell stated: "Although one of the key geopolitical risks this year is the excessive number of elections, with more than half of the world's voters having the opportunity to vote, uncertainty will not disappear with the end of the election."
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Short-term technical outlook for gold
Bednarik wrote that the gold daily chart shows that moving averages continue to move upward, well below the current gold price level; the 20-day simple moving average (SMA) is accelerating, in line with the view that buyers are dominant. Technical indicators form a neutral to bearish slope but remain in the positive area.
Furthermore, on Monday, before the gold price reached $2,721.20 per ounce (the 23.6% Fibonacci retracement of the $2,601.87 to $2,756.36 rebound), buyers were encountered. A more significant support level is at $2,698.66 per ounce, which is the 38.2% Fibonacci retracement of the aforementioned rebound.Bednarik added that the 4-hour chart for gold shows that the price has held onto a moderate bearish 20-period SMA. The 100-period SMA and the 200-period SMA continue to move upward, well below the current level of gold prices; technical indicators have slightly declined but remain slightly above the midline. A breakthrough around the Monday intraday high of $2,745.90 per ounce should favor a retest of the record high for gold prices before moving towards the $2,800 per ounce threshold.
Valeria Bednarik provides the latest key support and resistance levels for gold prices:
Support levels: $2,721.20 per ounce; $2,708.50 per ounce; $2,698.60 per ounce
Resistance levels: $2,758.40 per ounce; $2,775.00 per ounce
At 10:33 Beijing time, spot gold was reported at $2,756.70 per ounce.
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