Gold surged notably on the back of selloff in the greenback, which came with rally in the US stocks. So far, the markets are expecting Republicans to take back control of the House after mid-term elections. Meanwhile, the race for Senate remains tight. Yet, in either case, the result would be a divided Congress and Administration. Investors would welcome such as result as that would limit new taxes and regulations.
Immediate focus is now on 1729.28 resistance in Gold. Decisive break there would complete a double bottom pattern (1614.60; 1616.51), which is at least a near term bullish sign. Stronger rally should be seen to 38.2% retracement of 2070.06 to 1614.60 at 1788.58 at least. Nevertheless, break of 1681.69 minor support will retain near term bearishness, and turn bias neutral first.
