Gold price after a nasty ride before elections dived below $1280 once there was a confirmation of Trump’s victory. Let’s see charts to know more.
Gold Price Weekly Analysis – Here Is How Trump Victory Spoiled Charts
· There was a solid rise in Gold price before the election results, as it moved above the $1320 level against the US Dollar.
· Donald trump won the US elections, and it caused a heavy selling in GOLD, taking it below $1280.
· Recently, the Initial Jobless Claims released by the US Department of Labor posted a decline from 265K to 254K.
Gold Price Technical AnalysisGold price after a move higher above $1320 failed to digest Donald trump victory, and moved down. The downside move was very sharp, as it broke the 50% Fib retracement level of the last wave from the $1271 low to $1337 high.
The most important point was the fact that the price broke a major support at $1280 with a bullish trend line on the 4-hours chart of XAUUSD. Moreover, the price also closed below the 100 simple moving average on the same chart.
The price traded as low as $1250.9 and currently correcting higher. The upside may be limited as the price may find sellers near the broken trend line at $1280. Moreover, the 23.6% Fib retracement level of the last drop from the $1337.3 high to $1250.9 low may also act as a resistance around the trend line.
Trade Idea – If you are looking to enter a sell trade, then consider it near the broken trend line at $1272-80 with a stop of a close above the 100 SMA (H4).
Recently, the Initial Jobless Claims report was released by the US Department of Labor, which boosted the US Dollar. The report stated that the Initial Jobless Claims declined from the last reading of 265K to 254K, whereas the market was expecting 260K.
The report added that “In the week ending November 5, the advance figure for seasonally adjusted initial claims was 254,000, a decrease of 11,000 from the previous week's unrevised level of 265,000”.
Overall, the market sentiment is positive for the US Dollar, which may ignite more declines in Gold price.