Gold Price Rebound: Will Gold Reach $4,550 Before Midterm Elections?

The price of gold pulled back from its summer high of $4,697 over the past two weeks, falling to a new low of $4,235 after the US interest rate decision on Wednesday evening. However, this brief drop was immediately followed by a sharp rebound, pushing prices back up to $4,400 shortly before the weekend.

The 50-day moving average has successfully fended off bears' attacks four times this week, and our primary scenario of a sideways trend between the 50- and 200-day moving averages remains intact.

Interest rate hikes have weighed on gold prices, but a technical rebound appears likely due to oversold market conditions, strong support at the 50-day moving average, and pronounced short positioning.