Gold prices remain relatively stable after finding support at $2,724 on Tuesday. This stability comes despite a potential reversal in the short-term uptrend. The upcoming US presidential election is a major factor influencing the gold market, with both potential outcomes impacting its value.

Election Uncertainty Fuels Gold Demand:

• A weaker US Dollar, driven by election uncertainty, provides a tailwind for Gold as it’s priced in USD.
• Regardless of the winner, political shifts can destabilize markets, potentially boosting Gold prices due to its safe-haven status.

Bullish Potential for Both Candidates:

• A Trump victory could lead to inflation and geopolitical tensions, increasing demand for Gold as a hedge.
• A Harris win might lead to higher government spending, potentially weakening the Dollar and driving investors towards Gold.

Technical Analysis Hints at Short-Term Downturn:

• A series of lower highs and lows on the 4-hour chart suggests a potential short-term reversal.
• Breaking below $2,724 could confirm this downtrend, pushing prices towards $2,709.
• The RSI indicator shows bearish divergence, suggesting underlying selling pressure.

Long-Term Bullishness Remains:

• Despite short-term weakness, Gold maintains its medium and long-term uptrend.
• A break above the all-time high of $2,790 could trigger a move towards $2,800 and $2,850.