How Do Election Results Affect Gold?
Tuesday's U.S. elections tookplace and the results were as expected; the House turned blue and Republicans addeda couple of seats in the Senate. Gold had a very active night as well with abig rally on fear, sell-off on relief and now a rally towards the overnighthighs on relief.
How do these results affect theprice of gold? The simple answer is they don't. Asset classes may react to thenews, but they eventually go back to the patterns they were trading. This timewill not be different.
Gold is still in theconsolidation pattern, looking to break out to the upside. Gold is makinganother attempt to break above the $1,240 level, which we expect sooner thanlater. This morning's weaker dollar may be enough to push gold throughresistance; however, the bigger picture is gold breaks out, weak dollar or not.
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