Democrats now controlling the house of representative, at least they got the needed majority so now they would be able to control the House of representatives,
but what about gold and silver? let's come to the point
following the election the dow jones broke 26000 point, The S&P had made a quite good rally while the NASDAQ was the best performer among made a net gain of about 163-167 points(approx). The US DOLLAR had also made significant upward rally since the election has ended sitting over 96.50. The entire precious metals market is benefiting from dollar strength today but it's still holding onto respectable levels
our suggests that the gold has its weak support at 1221.70 where the 100-day moving average stands and $1218 which is the 0.618% retracement-however we believe these levels are very weak and once gold will break below these level a free fall in gold and silver will follow- Gold price settles below the EMA50, to keep the suggested on the intraday basis, waiting to visit 1208.40 level as our short-term next main target
Our previous comment
1-we believe after the US mid-term election when the dust will be settled, the recent news events and relatively strong earning data will push the US stock market and economy to upside in a significant manner
2-If US-CHINA Trade war will be eased through the losing the policy by trump in the near future, we expect the equity market to surge 5-10% over a few weeks or even in few days on that news alone, hence a significant downfall in the precious metals sector.
3-we strongly believe experienced money managers and strategic professional trader should tight their seat belts and should start taking trades in gold -0.31% and silver 0.00% as we are expecting a sharp move as the price could move in a very aggressive manner soon-However we are very for the mid and long-term in the precious metals sector.