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Technical Analysis: Gold sellers return even as US election polls blue wave hopes

Early results from the 2020 US elections portray a tough fight between President Donald Trump and his rival Joe Biden. Although Trump manages to secure a lead in Florida, his total count falls below Biden's 220+ figures. While the final results are likely to take three more days, the US dollar's gains weigh on the gold amid the initial updates. In doing so, the bullion steps back from a two-month-old falling trend line, needless to mention about a reversal from 50-day SMA, surrounding $1,913/16 figures. Given the tight race and a likely delay in the outcome, the US dollar may keep the recent gains, which in turn could weigh on gold prices. Hence, lows marked during October and September, respectively around $1,860 and $1,847, will lure the bears.

Alternatively, a clear upside beyond $1,916 requires the confirmation that the Democrats dominate the US Congress, known as the blue wave. Following that, the previous month's high near $1,931 will be a minor resistance ahead of the gold bulls' run-up towards September's peak surrounding $1,973/75. In a case where the precious metal remains bid past-$1,975, the $2,000 psychological magnet will be important for market players to watch.

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