Article by: ETO Markets

Gold prices (XAU/USD) struggled to maintain gains after bouncing from a recent low, facing pressure as strong US Dollar demand, fueled by exit polls indicating a potential Trump lead in key swing states, emerged as a headwind. The USD Index (DXY) reached a one-week high amid expectations of Trump's potential tariffs and deficit spending, which spurred US Treasury bond yields upward. This strengthened the Greenback and capped gold’s performance. However, traders remained cautious due to anticipated post-election volatility, which limited aggressive selling of the safe-haven metal. Early election results showed Trump leading in states like Georgia and Wisconsin, while Vice President Kamala Harris led in Pennsylvania and Nebraska District 2. The risk-on market sentiment, paired with rising bond yields, further constrained gold prices. Additionally, Iran’s potential response to an Israeli strike added to market concerns over escalating Middle East tensions. 

From a technical perspective, the price has been consolidating near the peak of approximately $…, acting as resistance, while immediate support levels are around $…. On the upside, resistance at $…-…acts as an immediate hurdle, with further gains potentially lifting prices to the trend-channel resistance around $…-…. A breakout above $…would signal a continuation of the broader uptrend. On the flip side, the $…-…area serves as immediate strong support for XAU/USD, and a break below this zone could accelerate the decline toward sub-$…levels, $…(October Low).