However, due to the potential U.S. election upset by Donald Trump, the decline in the U.S. dollar and general market turmoil, the gains in the yellow metal have come quickly.
Near-term, the z-score of daily price action is 2.19 (down from 2.5) with the stochastics showing a potential for an overbought sell signal.
On the other hand, the z-score on the weekly price action is -.39 and is combined with a healthy and increased + DMI activity.
Translation: gold has the potential to pullback near-term, especially is Hillary Clinton wins the White House on Tuesday. But, the longer-term trend still remains intact and healthy for further upward extension.
Likely to see continued resistance between $1,308-10 with nearest support near $1,284 then $1,262. On the risk aversion aspect of the coming election, a Trump win would give gold the boost to challenge the overwhelming downtrend – tested twice this year but failed – created as gold fell from $1,921.
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Our exclusive analysis on precious metals can be found at Bullion.Directory. Original article posted here.