Gold Calmer After The Storm

During the Presidential Election day Gold saw a boost in prices that led to a high of $1,337. Top forecasters predicted that a Trump victory would rapidly depreciate the US dollar which would results in rising Gold prices. In the end of the day, however, Trump won and the US dollar rallied, bringing down all gains in the Gold market.

So Gold went from $1,337 to $1,267 in that day and has been depreciating since. Yesterday Gold made a low of $1,212 and has recovered moderately to current market price of $1,226. It appears that Gold has found some support and now bears will take a break. 

Strong support is seen at $1,200 which will form a double bottom and has the potential to sustain the bear rally and give bulls the chance to buy at good levels. If that support is broken Gold is likely to continue falling due to major factors contributing, namely the 92% chance of rising rates in December, price being below the 200SMA and the strengthening US economy. 

Chart: XAU/USD D1