📈US30 hit 10-week high💥

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. 

We encourage you to familiarize yourself with our midterm election report, where we outline the key markets that can react to the results.

This 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