Gold tests $4,100 level as dollar weakens after US elections

Gold prices are testing the $4,100 threshold, extending a recovery that saw the precious metal climb 3.4% on Wednesday to approximately $4,060. The move marks the strongest daily advance for bullion since August, driven by a sharp decline in the U.S. dollar following the midterm elections.

Treasury yields have provided additional support for the metal, with the 10-year yield sliding toward 4.88%. Lower yields reduce the opportunity cost of holding non-yielding assets like gold, encouraging a shift in investor appetite toward the metal.

Market participants are now monitoring whether the current price range of $4,090 to $4,100 can establish itself as a durable value area. Analysts note that the current advance represents upper-price discovery rather than confirmed stability, with the next major test for the auction sitting between $4,108 and $4,125.

Despite the bullish momentum, labor market data remains a potential headwind. October ADP private payrolls rose by 86,000, exceeding the 69,000 expected by analysts. Investors are now looking toward Friday’s nonfarm payroll report, which is projected to show an addition of approximately 65,000 jobs. A stronger-than-anticipated labor report could revive expectations for Federal Reserve tightening in December, potentially pressuring gold prices.

Technical support levels are currently identified between

$4,000 and $4,018. A rotation back to this region would provide critical information on whether buyers can maintain control.

If the market rejects lower prices in this zone and rebuilds higher, it would signal that value has migrated upward. Conversely, a sustained break below $3,955 would indicate that the recent upside imbalance has failed to establish durable higher value.

Source: TradingView market analysis, Oct. 30