Oversold? Price drop does not mean the bull market is over!

Gold prices closed the week with a 5% decline as the precious metal traded well below $ 1,900 an ounce. For the next week, I am carefully watching the technical factors to see if this strong sell-off has ended as I was trading a large number of lots. based on the movements that I technically observe, the price movement seems to be forming a rising wedge pattern. If gold doesn't find solid support on Monday, the price could fall well below $ 1,800 before the downtrend ends. Uncertainty surrounding the U.S. election, coronavirus and economic recovery is driving investors towards cash ahead of the election, which is triggering a lot of volatility across all markets. What I perceive is happening here is that investors generally are getting more and more nervous. With the election coming up and a high potential of a second COVID-19 wave, the equity markets under pressure… It is going to be a mess! However, putting all the short term volatility associated with the US election aside, the macro picture is very bullish for gold. Even if gold drops by $ 200, that doesn't mean the uptrend is over. If we walk out of the election fairly, the Fed keeps interest rates at zero until 2023 and European banks inject more liquidity. I'm sure gold will set an all-time high again!