U.S Stocks Rally Following Mid-Term Election Results
Investorsand market participants seem unfazed while bidding the U.S. equities upsubstantially following the midterm elections which resulted in the DemocraticParty now controlling the House of Representatives. Although the Senate remainsfirmly in control by the Republicans, yesterday's election gave Democrats the needed majority to control the House ofRepresentatives.
With one hour left in trading, the Dow Jones Industrial Average has barreled backthrough 26,000 and is currently up 464 points, +1.84%, to reach 26,100. TheS&P 500 is also moving strongly tothe upside with gains of 1.75% on the day. However,it is the NASDAQ composite that is exhibiting the most substantial gains today.Gains are currently up over 2.2%, with anet gain of 163 points, taking that indexto 7,556.11.
Theonly financial instrument to move lower on the day based on the elections wasthe U.S. dollar. The dollar index is currently down a third of a percent andfixed at 95.825. The entire precious metals complex is benefiting from dollarweakness today.
Theprecious metals complex is trading higher across the board, and although theprecious metals are well off of earlier intraday highs, they are still holdingonto respectable gains.
By farthe greatest percentage gain today can beseen in palladium which continues to move closer and closer to parity withgold. Palladium futures are currently up$25.50, which is a net gain of 2.33%, taking an ounce of palladium to $1,120.80.
Goldis trading higher today but has the smallest percentage gains on the day whencompared to the other precious metals. The most active December Comex futurescontract is currently trading up by $2.10 and fixed at $1,228.40. Today's gainsin palladium take current pricing within striking distance of parity, with only$108 separating the two metals.
Technically Speaking
Ourtechnical studies indicate that gold has support at $1,221.70, the 100-daymoving average, and at $1,218 which is the 0.618% retracement. We see currentresistance at $1,246.80 which is the 50% retracement, with major resistanceat $1,272 per ounce which represents the 200-day moving average.
Althoughpalladium has traded nominally higher than current pricing, a close at thecurrent levels would equal the highest closing price on record. A move above $1,135per ounce would put that precious metal in uncharted territory and a new all-time record high. 0Major support for palladium occurs at $1,060 per ounce, whichcorresponds to the 0.23% retracement. Because the precious metal is at an all-time record high current pricing definesresistance.
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Wishingas always, good trading,
By Gary WagnerContributing tokitco.com
Follow @garyswagner
gary@thegoldforecast.comwww.thegoldforecast.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |