Gold Gold daily video, November 05, 2018

[Sive Morten]

Good morning,

Technically gold market looks good, but as on EUR, fundamental background doesn't look friendly right now and could bring unwelcome adjustments, especially Fed meeting results:



The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[Joh]

Good morning,

Technically gold market looks good, but as on EUR, fundamental background doesn't look friendly right now and could bring unwelcome adjustments, especially Fed meeting results:



The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

Thank you Sive.
My Q is: . 'For those like me that do not live in the US but get a fair bit of news, i do not have a clear picture how the Midterms in the US can or will affect the $US or Gold or E/U or G/ U and other currencies. What will the market do the Democrates will more seats? Have now read 2 opposing reports and am non the wiser,.are you please willing to share your view?
Thanking you in advance, joh.

 

[Sive Morten]

Thank you Sive.
My Q is: . 'For those like me that do not live in the US but get a fair bit of news, i do not have a clear picture how the Midterms in the US can or will affect the $US or Gold or E/U or G/ U and other currencies. What will the market do the Democrates will more seats? Have now read 2 opposing reports and am non the wiser,.are you please willing to share your view?
Thanking you in advance, joh.

Hi Joh,
well, I'm also not a superb politician, but I try to find some analogies. Recall that last year, T. May has initiated preliminary elections and he lost majority support in result. This was not good sign. So, probably some volatility will come on market and it could be negative for USD.
But, here we have two major points. First is - it depends on the degree of Democrats majority. Second - between US and UK economy is big difference. Now USD mostly is driven by the Fed, while GBP was driven by political events, Brexit etc. because situation in GB economy is far from ideal.

Putting its all together, I suggest negative impact if Democrats will overcome D. Trump party with significant %. If it will be few seats - hardly this will be the problem. Second - anyway effect will be short term, because all eyes right now on 8th November and Fed meeting.