Gold Awaits The Election
(Kitco News)- Gold has bounced in a $20 range since the end of October.Discounting the drop on Oct. 31, which webelieve was fund selling to grab some profits for client-statement purposes to offset losses in the equity space, goldhas remained in a very tight range. Good economic numbers on Friday helped tostrengthen the dollar, but gold remained resilient into the weekend. Thetechnical picture remains neutral unless gold can close above the $1,337 level,which it has attempted twice. Support rests at $1,220 and given overnightdollar action, we would be inclined to suggest a retest of this level, butthink the market is likely to remain bid ahead of tomorrow's election, withsupport around the $1,227 area. Should the Democrats surprise, we would expectpressure on the dollar and a move higher in the metals complex. Republicancontrol of the both the House and Senate should create selling pressure.
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