Gold is stuck in midterm elections, but it should not take long for gold to start moving again! The big question will be, “In which direction gold will resume”? Right now gold has been having great difficulty trying to rise above the 200-day MA. If the bull market scenario is, “True”, then gold has to soar. It may take a bit more time as investors need 3-4 hours to consume the results. That may happen long before the final midterm results are fully known. If election results do not move the price of gold, then I don’t know what will?
We could see a very violent move where gold shoots up, but then reverses just as fast. We have 3 gold support prices with the above weekly chart, and if each price support gets broken, it’s one more nail, or should I say 3 more nails hammered into golds coffin! Of course, gold heading down is considered a crazy idea. For the last few years gold has gone nowhere fast and when it tries to break out, gold just turns around and implodes. We won’t have that long to wait as I expect the gold price to start moving again.
Trends built on fear never last long as gold traders are extremely emotional and can run from gold even faster. Many presidents tend to lose ground in midterm elections and President Trump will be no different. All the stunts President Trump has created in the last few months, is related to the midterm elections. Opec was glad to help as they just pumped more oil to bring the price of oil down before the elections. President Trump is not the only president that has done this as others have tried as well.