As gold targets a new all-time high above $2,800, a trading expert has outlined key price levels to watch for the metal, especially after the United States elects a new president.
The metal is holding steady as it awaits major news that could drive significant volatility in the coming days. With the U.S. presidential polls dominating headlines, gold prices are expected to respond strongly to election-related news, RLinda noted in a TradingView post on November 5.
In line with election-linked news, the analyst observed that the market outlook has recently shifted. Previously, expectations leaned toward a Donald Trump victory, likely leading to policies favoring inflation, higher bond yields, and a stronger dollar.
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However, as of this week, odds are now tilting slightly toward a Kamala Harris victory, potentially signaling a different economic approach that could impact the dollar and gold.
According to the expert, the uncertainty add to expectations of a more moderate easing approach from the Federal Reserve and heightened geopolitical tensions in the Middle East.
When examining the next key price levels, RLinda noted that gold is currently testing critical support levels, with significant zones at $2,731, $2,724, and $2,713.
On the upside, resistance levels are at $2,745 and $2,758. While the price remains within these boundaries, technical signals suggest a possible attempt to break out from the current consolidation zone.
Gold price analysis
At press time, gold traded at $1,741, gaining about 0.2% in the past 24 hours. However, the yellow metal has shown weakness on the weekly chart, dropping by over 1%.
Based on gold’s current price movement, commodities trading expert GDXTrader indicated in an X post on November 5 that the metal is showing indecision.
The analyst noted that gold prices reflect hesitation, marked by the appearance of a decent-range doji candle, which signals market indecision. This doji forms as the metal consolidates following a pullback from the resistance of an ascending channel.
The expert added that last week’s formation of a bearish engulfing candle and a top pattern indicated a potential reversal as the yellow metal tested this key resistance level.
Now, the current doji suggests a pause, with neither buyers nor sellers gaining a decisive advantage, leaving the trend direction uncertain.
Gold key fundamentals
Indeed, amid the projected uncertainty stemming from the election outcome, gold could find more strength among investors, considering the commodity’s status as a safe haven during political instability.
This uncertainty is heightened by Trump’s assertion that if he loses his bid for the White House, it would only be due to fraud.
“[Gold is supported by] the uncertainty of the elections. Part of it is what happens if things don’t go so smooth, part of it is the possibility of tariffs, some kind of economic changes,” said Daniel Pavilonis, senior market strategist at RJO Futures.
Overall, gold has had an impressive run in 2024, with most analysts maintaining that the commodity will likely see further upside in 2025.
In this regard, the key target for the metal is $3,000, a forecast supported by banking giant Goldman Sachs.
Finally, provided gold stabilizes above the $2,700 mark, the asset has the potential to push to $2,800 following the highly anticipated election.
