How Do Election Results Affect Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesdayâ€™s U.S. elections took place and the results were as expected; the House turned blue and Republicans added a couple of seats in the Senate. Gold had a very active night as well with a big rally on fear, sell-off on relief and now a rally towards the overnight highs on relief.
How do these results affect the price of gold? The simple answer is they donâ€™t. Asset classes may react to the news, but they eventually go back to the patterns they were trading. This time will not be different.
Gold is still in the consolidation pattern, looking to break out to the upside. Gold is making another attempt to break above the $1,240 level, which we expect sooner than later. This morningâ€™s weaker dollar may be enough to push gold through resistance; however, the bigger picture is gold breaks out, weak dollar or not.