Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Technical Analyst, Saxo Bank
Gold closed Friday above minor resistance at 2,353 cancelling the short-term corrective downtrend.
However, it seems as if gold cannot gain upside traction and if the precious metal is breaking back below 2,303, the bearish corrective scenario is likely to resume with downside potential to the 0.786 retracement of the mid-March to mid-April uptrend at 2,207 (blue Fibonacci levels).
But, if gold can build on the break of 2,353, there is short-term potential to the 0.786 retracement (green Fibonacci levels) at 2,398. A close above 2,400 could lead to a rally to new all-time highs with potential to 2,490.