Gold and US30 are rising for a third day ahead of midterm elections results
Major Wall Street indices rose on Tuesday as the market digested a slew of weak earnings reports and now await for the outcome of the US midterm elections which could have significant impact on future government spending. Investors expect that a Democrat will hold the House, while Republicans could secure the Congress which would create a political gridlock. This shape of the political scene is more favorable by the markets than big policy changes.
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Create account Try a demo Download mobile app Download mobile appThis upbeat sentiment also supports precious metals and puts pressure on the dollar with some of the most pronounced selling activity against risk-sensitive currencies such as the New Zealand and Australian dollars.
US30 rose sharply on Tuesday and reached a level not seen since the end of August 2022. If current sentiment prevails, upward move may accelerate towards major resistance at 33800 pts, which is marked with 61.8% Fibonacci retracement of the last downward wave. The nearest support can be found around 32620 pts. Source: xStation5
GOLD finally broke above the major resistance zone around $1685, which coincides with above the upper limit of the descending channel and 61.8% Fibonacci retracement of the upward wave launched in March 2020. Next resistance to watch is located at $1732 and is marked with previous price reactions. Source: xStation5
Dollar weakened significantly against the antipodean currencies. Source: currency-strength.com
