Gold Prices Open the New Week with a Modest Rise

Forex - Last week, gold broke its record by surpassing the $2,790 level but closed the week in negative territory due to selling pressures at those levels. The new week has started with a slight increase. Market focus is turned towards the outcome of the U.S. presidential election scheduled for tomorrow. Additionally, expectations are priced in for the Fed to reduce interest rates by 25 basis points on Thursday.

Currently, gold is priced at $2,739.34, showing a 0.11% increase compared to Friday. KCM Trade’s chief analyst Tim Waterer mentioned that this week’s uncertainty could benefit gold, as delays in the election results or a split control of the House of Representatives and the Senate could increase safe-haven flows, leading to higher gold prices.

Analysts identify a support level for gold at $2,718. If this level is broken, a range between $2,704 and $2,700 may be tested. On the upside, the first resistance is at $2,748. If this level is surpassed, a target of $2,762 may be set.

The U.S. presidential elections will take place on Tuesday, and recent polls indicate a tight race between Democratic candidate Kamala Harris and Republican Donald Trump. Waterer stated, “The U.S. dollar has lost some strength at the start of the week, which keeps the door open for gold to rise.”