Gold Analysis Since November 7

Fundamental Analysis:

Gold prices have declined in the wake of Donald Trump’s victory in the 2024 presidential election, sending the dollar and Treasury yields higher. Treasury yields have risen amid expectations that a second Trump administration may introduce policies, such as tariffs, that are likely to stimulate inflation, which could prompt the Federal Reserve to slow the pace of interest rate cuts. Republicans have also secured a majority in the Senate and are on track to win the House of Representatives, suggesting a possible Republican sweep in 2024.

Technical Analysis:

- Gold price traded lower after the previous break below the previous support level of 2675.00. The analysis showing a strong bearish signal suggests that the commodity is likely to extend its losses.

- If the downward momentum continues, there is a strong possibility that the price will head towards the 2600 level and conversely, a possible reversal is also expected and the price may head back towards the 2675.00 level.

- If we break below the classic pattern, we will have to look at things from a different perspective, but at this point we are likely to see a bounce between now and then.

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