Market Analysis

Gold (XAU/USD) rebounds on Friday, regaining some of its previous losses. Heightened uncertainties surrounding the US presidential election and ongoing geopolitical tensions in the Middle East lend support to the precious metal, a traditional safe-haven asset.

However, rising US Treasury yields and a stronger US Dollar (USD) may limit gains. Traders will closely monitor the US October employment report, including Nonfarm Payrolls (NFP), the Unemployment Rate, and Average Hourly Earnings, for additional clues. A stronger-than-expected report could lead to reduced expectations for aggressive rate cuts by the Federal Reserve (Fed), potentially putting pressure on the non-yielding gold.

Technical Analysis: Long-term Support for Gold Remains Intact

Gold prices maintain an upward momentum, supported by a strong bullish trend on the daily chart. The metal continues to hold above the crucial 100-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) remains positive, positioned above the 50 mark around 62.30, which supports the prospect of further upside in the near term.

On the upside, the all-time high in the $2,790-$2,800 range serves as a key resistance point. A sustained break above this level could propel gold toward $2,850.

To the downside, initial support is located at $2,715, the October 24 low, followed by additional support around $2,624, the September 30 low. Further support can be seen at $2,600, with the $2,500 level, a round number, providing a potential bottom.

Paraphrasing text from "FX Street" all rights reserved by the original author.