Gold prices whipsawed but were unable to gain traction despite a decline in the greenback which was offset by a rally in US yields. This came as UK exit polls projected an 86-seat majority for the Conservative Party in the U.K. general election. Riskier assets gained traction as the White House announced that a phase-1 deal with China was all but confirmed. Both the US and China have announced that an agreement in principle was all but complete.
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Gold prices attempted to move higher as the dollar lost ground but were unable to push through resistance near the moved higher pushing through short-term resistance near the 50-day moving average near 1,479. Short term support seen near the 10-day moving average at 1,468. Prices remain in a downward sloping consolidation pattern, after running up to fresh multi-year highs in September. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is neutral as the MACD histogram prints in the black with a flat trajectory which points to consolidation.
Boris Johnson Wins a Majority
Exit polls from the UK show that the conservatives have won a majority and will likely move forward with a Brexit. Shortly after 10 p.m. London time, a survey of thousands of people who had just left the voting booth, indicated that the Conservatives are on course to gain around 50 seats, ensuring a healthy majority. The Labour would lose 71 seats from its performance in 2017. In Scotland, the Scottish National Party is forecast to win as many as 55 seats
This article was originally posted on FX Empire
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