Gold Forecast 05/11: Election Rally Faces Resistance (Video)
(MENAFN- Daily Forex) Gold continues to see a lot of noise in the market, as the elections in the United States have given control of Congress to the Democrats.GoldThe gold market rallied pretty significantly during the early part of the trading session on Wednesday, mainly, I believe, in reaction to the election results in the United States, with the Democrats taking Congress. Traders are starting to think about potential moves in the war.Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money The situation probably doesn't change much to be honestThat being said, though, it is very unlikely that the situation changes much. At the end of the day, many in the Democratic Party support the conflict in the Middle East, so I think this is probably going to end up being a bit of a fade-the-rally type of situation.
The $4,100 level is a significant swing high as of late, and if we could break above there, then it would be a very bullish sign indeed. The biggest problem I have with taking that trade, quite frankly, is going to be the fact that the nonfarm payroll announcement comes out on Friday.
EURUSD Chart by TradingViewOf course, we have not had too many official statements coming out of the Middle East. We do have the Qatari foreign ministers trying to do what they can to facilitate some type of peace agreement, but quite frankly, I just do not see this changing. This could end up being a nice shorting opportunity for those willing to get involved. This is a market that I am still negative on, but I am not willing to get aggressive without the information that Friday will bring. (Jobs report)AdvertisementReal rates still pay you to hold paper. That is a big problem as well. But if we were to break above the $4,200 level, it is what it is, and you simply have to recognize that the market has changed. I think Friday will be crucial when trying to figure out what to do here.Ready to trade today's Gold forecast? Here are the best Gold brokers to choose from.
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