Brad Alexander
FX Large Limited
Investors have rushed to gold as a safe haven after the death of the Hamas leader yesterday.
Gold has gone above $2,700 for the first time based on heighten tensions in the Middle East and the upcoming US elections.
Keep an eye on this as any talk of a ceasefire or peace talks may see a reversal.
Gold is paired with USD, of course, and we can see that price action on all major USD pairs are moving in the opposite direction of XAUUSD.
Regarding the US Elections, historically a Republican victory means a stronger USD while a Democrat victory sends it weaker.
However, these are not normal times and we will have to see on November 5th.
We were waiting for a reversal after the fall of Crude Oil earlier in the week.
After the death of the Hamas leader yesterday, we saw volatility in price action and a reversal.
But watch the technicals and the news to see if the bear run on WTI and Brent Crude continues.
Analysts feel that the sell-off on equities is over and it is time to get back into the markets.
Price action on the S&P500 and the NASDAQ may be telling us that it is time to buy the dip.
The stochastic oscillator is oversold and you may want to wait for an upturn for confirmation.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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