Gold prices are up just over 1% despite a weekly range of over 2.2% as markets digest the results of the US Presidential Election. The recovery takes XAU/USD back into multi-month trend resistance and we’re looking for inflection up here for guidance. These are the updated targets and invalidation levels that matter on the XAU/USD technical charts heading into the close of a volatile week.

GOLD PRICE CHART - XAU/USD DAILY
Technical Outlook: We noted that XAU/USD was, “consolidating within the October opening-range just below multi-month downtrend resistance.” Our focus was on confluence resistance near “the 2011 high / October high-day close at 1920/22 with a breach / close above 1935 needed to mark resumption.” Price registered a high at 1931 one week later before reversing sharply with the September low-day close at 1867 catching the decline into the close of the month.

That recovery is now once again testing multi-month downtrend resistance on the heels of last night’s US Presidential Elections. Look for a reaction off this trendline with a breach / close above 1935 still needed to validate a breakout of the September downtrend towards 1988/92. Daily support at 1879 backed by 1867- weakness beyond this threshold would be needed to mark resumption of the August decline.

Reference by: Michael Boutros, Technical Strategist with DailyFX