Larger Trend Remains Bullish for Gold Despite the $60 Tumble

Gold Price Surges on US Data, Hits New High

Gold prices rose to a record $2,790 this week, driven largely by weak US JOLTS job opening data and anticipation around the upcoming US presidential elections. Earlier support from smaller moving averages, like the 50 SMA on the H4 chart, signaled high buying pressure. However, stronger-than-expected PCE inflation data and lower unemployment claims for September triggered a slight pullback. Yesterday marked gold’s first dip below the 50 SMA in three weeks, though this is a minor shift in light of gold’s 30% rally this year, starting near $2,000 in January.

Gold Chart H4 – The Price Fell Below the 50 SMA Yesterday

Market Sentiment Amid Election Uncertainty

As the US election approaches, investors across stocks, bonds, and precious metals have shown caution, preferring to wait on the sidelines. Gold, which has benefited from haven demand and central bank buying during crises in the Middle East and Ukraine, faced pressure after its three-month surge, briefly dropping by $60 to $2,730 (or around 2%) as some investors took profits.

Positive Outlook for Gold

Despite the recent dip, gold quickly found renewed support around the $2,700 level, which is expected to bolster optimism for further gains in the coming months. The overall uptrend remains intact, and the consistent buying pressure suggests potential for continued strength in gold prices as global economic and geopolitical uncertainties persist.