Gold price is once again above $1,900 but the advance has stopped right at the downward sloping resistance trend line. With US election results just around the corner, market action is expected to be erratic and many fake signals and break outs could be in play. Volatility is expected to rise. Traders need to be extra cautious.
Red line - resistance
Technically as long as Gold price is below $1,910 we expect Gold price to move lower. Resistance is strong here at $1,910 and a rejection could lead to another test of $1,850. Recapturing $1,910-20 area would be the first step for a bigger move higher. Traders should be looking at the weekly close for more information for the coming trend rather than the intraday charts, as volatility due to the USA elections is expected to rise.
