Share markets edged higher before the elections
Gold is continuing its slow recovery. In a scenario which has turned again to risk on, investors have still bought gold, bringing the price close to $1,900. All eyes are focused on the US election, trying to anticipate the next market movements in all sectors.
From a technical point of view, literally nothing has changed. We have seen in the last couple of days a rebound from the low of $1,860, but we are still in the major lateral trading range between $1,850 and $2,070. Looking closer, the price is now on a slow dance in the lower part, between $1,860 and $1,930, which is the first real resistance level for bullion. The presidential election will spark increased volatility and traders need to be ready for sharp and fast price moves when the new US president is announced.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Share markets edged higher across the world ahead of the US presidential election. Despite the sharp price moves around major support levels, investors expect more and more market volatility as we get closer to Wednesday morning, where the first clues on the outcome of the election should be available. Meanwhile, rebounds on equity markets may also be the sign that investors, after having already anticipated the latest lockdowns measures in Europe, now have their eyes towards the end of the crisis, just like happened in late March. Last week’s sell off have made share prices much more attractive for an investor who is already pricing the recovery. However, this trading stance may be disturbed by this week’s major events as investors will need to keep their attention on the latest monetary policy decision from the Fed on Thursday as well as the October US jobs report on Friday.
Pierre Veyret– Technical analyst, ActivTrades
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.