With the U.S. presidential election just around the corner, U.S. long-term interest rates have dropped, leading to early selling pressure on the dollar. Gold prices rose to $2,748, but gains were limited. Last week, gold reached record highs, partly due to anticipation of this week’s major events. However, some selling took place as positions were adjusted ahead of the main event.
Until the election results are known, we expect the “risk-off” buying trend in gold to continue, meaning gold prices are unlikely to drop much. We believe the upward trend will hold, with buyers waiting to purchase gold if prices dip.
In addition, lower U.S. long-term interest rates provide extra support for gold prices.
Expected Gold/Dollar Range: $2,762 – $2,717
Please note: This forecast does not guarantee profits. Please make your own decisions before trading.