Gold Daily | Stable Gold Prices Amid US Election Uncertainty; Bearish Technical Signals Emerge

【Latest Gold Price and Recent Trends】

Gold prices were stable at around $2740 as of Tuesday, amidst market caution ahead of the U.S. presidential election and the Federal Reserve's rate decision later this week. The ongoing uncertainty related to the election has continued to support gold. Analysts expect that if Donald Trump wins, it could further boost gold prices due to his proposed trade tariffs, which might spark inflation. The gold price has risen about one-third this year, benefiting from loose monetary policies, central bank purchases, and geopolitical tensions.

【Technical Analysis】

Gold is showing a bearish descending triangle pattern, indicating short-term bearish momentum. If it breaks below the key support of $2739, a further decline could be expected. Current support levels are at $2732 and $2725, with resistance at $2748.

【Market Sentiment and Economic Background】

The U.S. presidential election brings heightened uncertainty, which traditionally supports gold as a safe haven. However, the dollar's recent recovery has burdened gold's appeal. The Federal Reserve is expected to cut rates by 0.25 percentage points this week, which is anticipated to have limited impact on gold as it is already priced in by the market.

【Analyst Opinions】

Analysts believe that gold will rise regardless of which candidate wins the presidency due to expected continued government spending. JPMorgan suggests gold remains structurally bullish, with concerns over U.S. fiscal debt and supportive Fed rate cycles. UBS analysts maintain that the U.S. election will be the primary driver for gold this week. Meanwhile, geopolitical tensions, particularly in the Middle East, provide underlying support, although not enough to counteract the dollar's strength.