Uncertainty surrounding the US presidential election causes the price of gold to rise

Gold prices (XAU/USD) are trading in positive territory as of Monday, supported by heightened risk factors, including uncertainties surrounding the U.S. presidential election and continued geopolitical tensions in the Middle East. These factors bolster demand for gold, a traditional safe-haven asset. However, stronger demand for the U.S. dollar and rising U.S. bond yields may limit gold's gains, as higher yields make non-yielding assets like gold comparatively less attractive.

With the U.S. presidential election approaching on Tuesday, investors are focusing closely on its outcome. Attention will then shift to the U.S. Federal Reserve's interest rate decision on Thursday, where market sentiment suggests the Fed may deliver a 25 basis point rate cut rather than a larger half-point reduction, amid election-related uncertainty.

Technical Analysis: Gold Maintains Bullish Momentum Over Long Term Gold's price remains elevated, reflecting a bullish outlook as it holds above the 100-day Exponential Moving Average (EMA) on the daily chart. Additionally, the 14-day Relative Strength Index (RSI) stands above 50, near 60.20, indicating solid support levels.

A series of green candlesticks above the psychological and previous high levels around $2,790–$2,800 could drive XAU/USD higher to the $2,850 mark. Conversely, if gold trades consistently below $2,715, its October 24 low, the price could slip towards $2,624, the September 30 low, with further downside potential near the $2,600 level.

Paraphrasing text from "FX Street" all rights reserved by the original author.