Gold hits 1-week lows on election day

Gold broke below $1280 and dropped to $1272, hitting the lowest level in a week as the presidential elections take place in the US. Greenback gained momentum against its European rivals and the yen while it dropped versus commodity currencies amid risk appetite. Those moves were triggered by rising expectation of Clinton’s victory. 

The price of the yellow metal rebounded from the lows and it was trading around $1278 as traders remain with their attention on elections. 

Since the beginning of the week, gold has fallen almost $30, changing the short-term tone from bullish to bearish. 

Supported by the 20-day moving average 

The decline today found support around the 20-day moving average and also near an uptrend line from last month lows. A break below $1270 could open the doors for more slides. On the opposite direction, if it holds on top, it could regain moment. The key resistance continues to be around $1305/10. 

To learn more about this topic, check our video analysis.