Investor attention is focused on the US economic stimulus package and the upcoming elections
Fiscal stimulus package may be possible before the election on November 3
If the price jumps above $1950, the next target could be $1980 or even $2000
As long as the price is above 1800 dollars, this precious metal remains in the buying zone
Gold has ended the week above the $1900 level and if the price jumps above $1950, it would confirm the “bullish” trend. Concerns about sluggish economic growth in the midst of the ongoing pandemic continue to dominate the financial markets.
Fundamental analysis: Fiscal stimulus package may be possible before the election on November 3
Gold gained this week as investors are hoping for an economic stimulus package before the elections on November 3rd. The price of this precious metal is currently above the $1900 mark and the sentiment for gold remains optimistic for the long term.
The weakness of the US dollar and low Treasury yields could help this precious metal to climb back above $2000, but investors trading gold should be a little more cautious. According to some analysts, gold is currently overbought and the price of gold has become disconnected from fundamentals.
Nevertheless, there is no reason to panic, and as long as the gold price remains above $1,800, this precious metal is in the “buy” zone. Risk aversion is likely to prevail at the beginning of the week, which is positive for the gold price.
Gold is considered a safe haven and the price of gold has risen in the wake of the coronavirus crisis as investors look for safer places to invest their money. COVID 19 cases in the US continue to rise, while Europe is not doing any better with this pandemic.
This is certainly not good for the economy, but it could give a further boost to the price of gold. It is expected that the gold price will continue to be supported and could even accelerate in November of this year if the dollar continues to weaken.
Technical Analysis: Bulls Focus on Breaking the $1950 Resistance Level
Data source: tradingview.com
Gold gained this week and the current price is $1901. The current resistance levels are $1950 and $2000, $1850 and $1800 represent the current support levels.
If the price jumps above $1950 it would be a signal to buy gold and we have the open path to $2000. A rise above $2000 supports the continuation of the upward trend and the next price target could be around $2200.
If the price on the other side falls below $1800, this would be a strong “sell” signal and we have the open path to $1700.
The gold price is supported by uncertainty about the future of the global economy, and during downturns and financial crises, safe-haven investments generally perform well. Investor attention is currently focused on the negotiations for the US economic stimulus package and the upcoming presidential elections.