December gold reached an overnight high of $1242. Prices are currently trading back near the $1235 level.
Gold remains buoyant as a safe-haven as the stock market falters. Prices may continue higher if stocks remain weak. Gold would have to break below $1228 and then $1222 to support a downswing.
I think there is a lot of anxiety over the upcoming elections. Who wins control will shape the economic landscape. Political uncertainty is likely the cause of the current downturn in stocks.
-US DOLLAR- The dollar closed above the neckline yesterday, and that supports a run to 98.00. The next level of resistance arrives near the August 96.86 top. Closing back below the 95.75 level would invalidate the breakout.
-GOLD- Gold is ignoring the dollar’s breakout, and prices will probably remain buoyant as the stock market remains weak. We may not see a tradable trend until closer to the elections.
-GDX- Miners once again found support at the 10-day EMA. It’s been 2-weeks since the explosive move to $20.00, and prices have gone nowhere. We may not see a tradable trend until closer to the elections.
-SPY- The correction continues, and an ABC measured move supports a target around 259/260. I agree with Martin Armstong and believe this pullback is about the elections, not tariffs or interest rates. Investors and businesses are fearful of what the Democrats may do if they take over congress. I’ll go over a couple of possible scenarios in tonight’s report. In the meantime, I’ll look for support around 260 and a bottom between now and the elections.
