The gold market has been consolidating in recent days. Investors are clearly waiting for the US elections, which will take place in a week's time. Let's take a look at the current technical situation on the D1 and H4 intervals.
Looking at the daily time frame, gold prices are in an interesting place. After a dynamic sell-off in the first half of August, the price began to consolidate. However, the correction did not reach the key support at $ 1,820, which is marked with the lower limit of the 1: 1 structure (equal to the downward correction which appeared back in March). Buyers were already active at $ 1,865 level, which was tested again at the end of September and was additionally strengthened by 100 SMA. We are currently observing an attempt to return to the main trend. It is worth noting that the market is pushing hard, trying to break above the downward trend line. At the moment, the key level to watch lies at the $ 1933. Breaking above it, may trigger a bigger upward movement.
GOLD, D1 interval. Source: xStation5Looking at the lower time frame - H4, one can see that the price is stuck in a local consolidation. The nearest support is located at $ 1,895, while the aforementioned $ 1,933 level is acting as a resistance. Locally, one can also see that the price is bouncing off the upward trend line. As long as the price sits above it, the continuation of a upward trend is possible. However, one should be aware that in case of a break below, downward move towards next support at $ 1,875 may accelerate.
GOLD H4 interval. Source: xStation5
