After being flat for several trading days before, the price of gold showed a plunge on Wednesday's trading yesterday following the 2024 United States (US) presidential election.
In the Asian session, the movement of gold prices was still slow before the situation changed briskly in the trading of the following sessions.
The strengthening of the US dollar currency as the electoral vote counted in favor of Trump, the price of gold suffered a sharp fall to continue the downward pattern that began last week.
Observing the movement of the XAU/USD chart which measures the value of gold against the US dollar, the price which was at the height of 2750.00 yesterday has plunged to penetrate 2700.00 before reaching 2660.00.
Gold's biggest daily fall in 5 months has signaled a change in price patterns that has continued over the past few weeks.
The momentum of the price plunge started to fade in the New York session, but the downward movement continued slowly until the price reached around 2643.00 in the Asian session this morning (Thursday).
A further drop in the price of gold is expected to occur with the closest target seen to be in the 2600.00 zone.
The last time the price tested the support was last October 10 before bouncing up to the highest level.
However, if it is successful for the price of gold to bounce back above the 2660.00-2670.00 zone, an attempt at price recovery will be displayed.
The price will try to climb back above 2700.00 before heading towards the level before yesterday's plunge took place.
