Gold (XAUUSD) continues to correct, falling to 2,700 USD

XAUUSD prices continue to correct, plunging to 2,700 USD amid US dollar growth driven by the US election. Once the correction is complete, growth could resume. Discover more in our XAUUSD analysis for today, 6 November 2024.

XAUUSD forecast: key trading points

• Market focus: Donald Trump is confidently in the lead in the ongoing US presidential election
• Current trend: a local correction is underway as part of the uptrend
• XAUUSD forecast for 6 November 2024: 2,700 and 2,758

Fundamental analysis

XAUUSD quotes continue to trade within a local correction, after which upward momentum is expected to resume. Gold prices are supported by expectations of a potential escalation of the conflict in the Middle East and the US Federal Reserve’s interest rate-cutting cycle.

Gold quotes are tumbling today amid the significant strengthening of the US dollar, bolstered by the ongoing US presidential election. Donald Trump confidently leads the presidential race, and expectations of his apparent victory are helping the US dollar strengthen.

XAUUSD technical analysis

On the H4 chart, the XAUUSD pair continues to correct downwards as part of a strong uptrend. Today, the quotes fell to the 2,700-2,710 USD support area, which coincides with the lower boundary of the ascending price channel. There, they encountered strong buyer demand and reversed upwards.

The short-term XAUUSD price forecast suggests that the prices could correct further towards the 2,685 USD support level if bears push the quotes below the 2,700-2,710 USD support area. Conversely, if bulls seize the initiative and secure above 2,758 USD, prices could return to a high of 2,790 USD in the short term.

At this stage, the scenario suggesting an upward reversal from the 2,700-2,710 USD support area appears more likely.

Summary

XAUUSD quotes continue to correct downwards amid the strengthening of the US dollar due to the ongoing US presidential election, with no doubts remaining about Trump’s victory. The uptrend in Gold persists, and prices are expected to resume their upward trajectory once the correction is complete.