Gold gained almost 3% in early Wednesday’s trading, in immediate reaction to the victory of US Democratic party in the midterm election.
Growing uncertainty about political action after Democrats regained full control of the US Congress, as well as concerns about fiscal outlook, prompted dollar sales and revived gold’s safe- haven appeal.
Traders were also concerned about potential stronger control and regulation of currently turbulent AI sector that can have negative impact on economic growth, with focus shifting on another key event of the week – release of nonfarm payrolls data for October.
Bounce from new low at $3870 (the lowest since late Sep 2025) extends into third consecutive day and accelerated back above $4000 mark (reinforced by 10DMA) on Wednesday, generating initial bullish signal.
Close above $4000 is required to validate initial signal and keep near-term action biased higher, as situation on daily chart is still fragile, with technical picture being predominantly in bearish configuration (north-heading 14-d momentum is still in negative territory / most of MAs remains above the price).
Fresh bulls pressure immediate barrier at $4049 (daily Kijun-sen) ahead of $4065/75 (Fibo 23.6% of $4697/$3870 descend) and $4100 (round-figure) violation of which would provide relief and open way for stronger recovery towards $4186 (Fibo 38.2% / $4203 (100DMA).
Caution on failure at $4065/75 zone that may keep the downside at increased risk, while return and close below $4000 would signal an end of recovery and bring larger bears back to play.
Res: 4065; 4083; 4100; 4155
Sup: 4000; 3975; 3942; 3900
