Here are my areas of Interest for Gold - I have marked and given the prices where I will be looking for reversals. I only ever enter trades when I see clear reversals from these areas. I won’t enter unless I see a shift of momentum on the smaller time time frame (1-15m for entries) for good risk/reward.
With the elections coming up, Gold could be a spicy one - so it’s worth setting alerts and keeping an eye on these areas. I wouldn’t recommend trading on the actual election day, though.
If Joe Biden wins the US presidential election, the US stock market (#WallStreet) will fall and the US dollar(#USD) will weaken against the other currencies, so we could see some manipulation on the Dollar before the elections (maybe strength) which will bring Gold down.
However, I have a sneaky feeling that Trump will get back into office again - which will shake up the market as Biden is poll favourite.
I will be watching this from the sidelines personally. While there will no doubt be opportunity it is so wide open in reality that it represents too much of a gamble for me.
If the U.S. election results show a landslide victory and the losing candidate quickly concedes to the outright winner, then gold will probably fall since potential election chaos is what’s helping to keep gold’s price elevated.
Any removal of market volatility, uncertainty, or ambiguity will be bearish for gold.
If/when a new stimulus bill is passed, I look for gold to re-test $2000. The “inflation trade” will return as more stimulus is seen as inflationary, which is fundamentally bullish for gold.
It will be interesting to watch the news related to US stimulus package as it can boost gold price. I am expecting it to rise. Though election results can have a bearish impact on gold.
On the 27th of October, I posted my areas of interest for Gold. Unfortunately the first area was a no go, and we didn’t see much of a reaction (no indication to buy), but price continued to make its way downwards to our second buy zone. It was tapped nicely and started its incline up.
You can see my two entries on this trade, and where my TP was. I took profit on the marked 4H Bearish Order Block, but pulled out just before the election as the markets are purely moving fundamentally right now. A Biden win, could send Gold upwards to 1950 at least (where our second sell zone is), weakening the Dollar - which is looking likely right now based on the results. However, I’m still not ruling out a sneaky Trump win.
For the first entry, I noticed a shift in momentum to the upside, we got a break of structure, which was then re-tested. I set a buy limit on the body of the wick formed, with my SL just above it.
For my second entry, there was another BOS, a 15m OB was formed. I put another limit on the top of the body, with my SL just below.
In total, this trade equated to 31.5 RR. Another example, that you don’t need to over trade. Be patient.
Thank you for sharing this. Even the gold price will rise further due to biden presidency. Biden will remove various sanctions due to which oil price can go down. Market is going to be really volatile now.
Gold declined the next day after the election result so everyone started thinking that it might have a bearish trend going forward but I think that it will rise evening and it has a bullish trend in the long run.
It will be a great deal to watch, On Thursday, the third-quarter Gross Domestic Product (GDP) report from the UK will be looked upon for fresh catalysts ahead of Friday’s euro area GDP report, which is expected to confirm the 4.3% contraction in the economic activity in the third quarter.
