SMM News: the US election has finally come, but it is still a big question when the result will be confirmed.
Rhona O'Connell, chief market analyst at StoneX, said the chances of a result on the day of the US election or even the next day are not high.
"next, the results of the counting of votes in the US election may be controversial, and those mailed votes will take time to calculate, so the results may not be touched on the day of the election."
O'Connell pointed out that this means that the gold market will remain stable.
Gold prices fell sharply last week, testing the support level of $1860 / oz at one point, but have since rebounded, approaching the $1900 / oz mark this week.
"the oversold state of the gold market was corrected last week, so gold prices are currently testing the $1900 / oz mark and the 10-20 moving average."
The lower support of the gold market is at $1873 / oz, the Fibonacci pullback.
The coming US election is the biggest risk event of the year and a challenge that the whole market has been paying close attention to for a long time. The huge uncertainty surrounding the US election made investors in the gold market wait and see and volatility intensified.
Opinion polls show Democratic candidate Joe Biden winning, with a small lead in the key swing states of Pennsylvania, Florida and Arizona. "
O'Connell said the dollar will remain a key factor driving gold prices in the future.
"Gold's volatility zone is still narrow, but market participants expect high volatility in the coming trading days and uncertainty over the US election will continue to support gold."
