As the US Dollar continued its decline yesterday with a Biden victory in the US Presidential election edging closer, Gold reacted with a significant jump to its highest level in more than a month. Investors are betting on a “low cost” Dollar for the medium-long term under a Biden presidency, as well as a dovish Federal Reserve.
Technically, we are still in the major lateral channel between $1,850 and $2,070, but we saw a first important movement yesterday as the bullion price surpassed the resistance placed at $1,930, jumping above the peaks of October 12 and 21. The next few hours and days will be crucial for understanding if gold can completely clear this resistance, continuing its recovery to the $2,000 mark in the short-term, or if a consolidation pause will be needed. Overall, the yellow metal is clearly regaining momentum.
