During and after the day of the US Presidential Election the yellow metal has traded in the range from 1,885.00 to 1,915.00. This has occurred despite no clear election results. Due to that reason a larger move can be expected, as soon as the results are announced.
In the meantime, it was spotted that the 100-hour SMA managed to provide support and the monthly pivot points managed to impact the commodity price.
Economic Calendar Analysis
On the day after the US Election, on Wednesday, the US ISM Non-Manufacturing PMI will be published at 15:00 GMT.
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
At mid-day on Wednesday, the yellow metal's price was heading back to the resistance of the 1,915.00 level. However, note that the 1,910.00 could provide resistance, as it did on Tuesday.
In the case of the 1,915.00 mark failing to keep the rate down, the metal would aim at the resistance of the monthly R2 simple pivot point at 1,928.54.
On the other hand, a possible decline most likely would ignore the monthly PP and S1 and the 55 and 200- hour simple moving averages. In the meantime, note that the 100-hour SMA had enough support to reverse the metal's early Wednesday decline.
Hourly Chart
On the daily candle chart, the yellow metal is testing the combined resistance of the 55-day SMA and the 38.20% Fibonacci retracement level at 1,916.80.
In the meantime, support is being provided by the 100-day SMA and the 23.60% Fibonacci retracement level at 1,879.18.
Daily Candle Chart
Traders are long on Gold
Since Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 64% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 64% to buy the metal.