Current trend

The XAU/USD pair moves in an upward trend, trading at 2676.00 and approaching its historical high of 2685.00.

At the annual London Bullion Market Association conference in Miami on October 14, three central banks’ representatives said they were purchasing gold to diversify reserves for financial and strategic reasons. Thus, in the US, the regulator is preparing for the upcoming presidential elections, where both candidates, Donald Trump and Kamala Harris, according to preliminary polls, occupy approximately the same positions, and the ongoing uncertainty is forcing large banks to hedge risks.

Another factor supporting the asset is the conflict in the Middle East. This week, Israeli Prime Minister Benjamin Netanyahu informed the US administration of his readiness to attack Iran’s military infrastructure. However, damage to oil or nuclear infrastructure is excluded.

The trading instrument is moving in a long-term upward trend, trying to renew the historical high of 2685.00. After consolidation above, the price may reach ​​2750.00 and 2810.00. In case of a decline to the support level of 2602.00, long positions, with the target at 2685.00 are relevant. However, in case of a breakout of 2602.00, a long-term correction with the targets of 2546.00 and 2471.00 will begin.

The medium-term trend remains upward. Last week, a correction developed. Within it, the quotes did not reach the trend support area of ​​2575.61–2564.61. After a reversal, the price headed to the high of 2685.61 and then to zone 3 (2712.70–2701.70). The price may reverse into a correction to 2575.61–2564.61 and then grow to 2625.00 and 2685.00.

Support and resistance

Resistance levels: 2685.00, 2750.00, 2810.00.

Support levels: 2602.00, 2546.00, 2471.00.

Trading tips

Long positions may be opened above 2685.00 with the target at 2750.00 and stop loss 2664.00. Implementation period: 9–12 days.

Short positions may be opened below 2602.00 with the target at 2546.00 and stop loss 2628.00.