GOLD: Trend is still bullish
Updated
Hi Traders!
Gold futures rise 0.3% to $2,763.30 a troy ounce. The precious metal is close to its all-time high of $2,772.60/oz, set on Wednesday. Gold is maintaining its strength despite rising U.S. Treasury yields and slightly easing geopolitical tensions, says Pepperstone research strategist Dilin Wu. The driving force appears to be bets on a potential Trump victory in the U.S. presidential election, Wu says in a note. This is coupled with growing concerns over the escalating U.S. debt crisis. While both candidates advocate for expansionary fiscal policies, a sweep for Trump could see U.S. debt skyrocket by $7.5 trillion over the next decade, Wu says. This is more than double the $3.5 trillion expected under a Harris administration. Given the "Trump trade," the path of least resistance for gold seems to be upward, she adds.
From a technical point of view, the trend is still bullish and on the intraday chart we have something like a bullish harmonic structure with a potential Target around 2773. The Trendline bearish breakout is negative, because it could trigger the Harmonic Pattern failure. Please support this idea for future updates below.
Thanks for watching.
Gold futures rise 0.3% to $2,763.30 a troy ounce. The precious metal is close to its all-time high of $2,772.60/oz, set on Wednesday. Gold is maintaining its strength despite rising U.S. Treasury yields and slightly easing geopolitical tensions, says Pepperstone research strategist Dilin Wu. The driving force appears to be bets on a potential Trump victory in the U.S. presidential election, Wu says in a note. This is coupled with growing concerns over the escalating U.S. debt crisis. While both candidates advocate for expansionary fiscal policies, a sweep for Trump could see U.S. debt skyrocket by $7.5 trillion over the next decade, Wu says. This is more than double the $3.5 trillion expected under a Harris administration. Given the "Trump trade," the path of least resistance for gold seems to be upward, she adds.
From a technical point of view, the trend is still bullish and on the intraday chart we have something like a bullish harmonic structure with a potential Target around 2773. The Trendline bearish breakout is negative, because it could trigger the Harmonic Pattern failure. Please support this idea for future updates below.
Thanks for watching.
Trade closed: target reached
Target 1 hit!Note
Gold traded at a record high midafternoon on Tuesday, supported by safe-haven buying ahead of the Nov. 5 U.S. election even as the dollar and yields rose.
Gold for December delivery was last seen up US$25.30 to US$2,781.20 per ounce, above the Oct.22 record close of US$2,759.80. The rise comes amid an uncertain economic outlook as the U.S. election nears, with polls seeing a tight race between Kamala Harris and Donald Trump, who has promised a radical tariff policy that could upend global trade.
"Gold trades up on the week, despite deflating risk premiums elsewhere, confirming the focus remains the US election and especially the prospect of a Trump 2.0 as it may bring greater policy disruption, trade tariffs, and increased geopolitical risks," Saxo Bank noted.
The ICE dollar index was last seen up 0.01 points to 104.27.
Treasury yields rose, with the yield on the U.S. two-year note last seen up 0.5 basis points to 4.143%, while the 10-year note was paying 4.294%, up 0.8 points.
Note
Trend is still bullish, potential Target 2 in play....Note
Analysis update:
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