Gold (XAUUSD), Silver, Platinum Forecasts – Gold Soars 3.5% After Democrats’ Victory In Midterm Elections

Gold Soars Above $4050 As Democrats Win Midterm Elections

Gold rallied as traders focused on results of U.S. midterm elections. Democrats enjoyed a major victory, taking control of the House and the Senate.

Treasury yields pulled back as bond traders reacted to political developments. The yield of 2-year Treasuries settled below the 4.58% level, while the yield of 10-year Treasuries pulled back towards 4.90%. Falling Treasury yields served as a bullish catalyst for gold prices today.

FedWatch Tool indicates that there is a 79.5% probability that Fed will raise rates at the next meeting in December. However, gold traders preferred to focus on near-term yield dynamics today.

Oil markets suffered a sell-off as Senate Democratic Leader Chuck Schumer said that the war in Iran must end, adding that Republicans were joining the move. Brent oil prices are down by as much as 10% as traders react to Schumer’s comments.

U.S. dollar pulled back against a broad basket of currencies, providing additional support to gold markets. Weaker dollar is bullish for dollar-denominated commodities as it makes them cheaper for buyers who have other currencies.

Gold climbed above the resistance level at $4000 – $4020 and is trying to settle above the $4050 level. In case this attempt is successful, gold will head towards the $4100 level. A move above $4100 will open the way to the test of the next resistance level at $4180 – $4200. This resistance level has been tested many times and proved its strength. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

Silver Rallies Amid Rising Appetite For Risk

Silver rebounds as traders focus on the strong rally in gold markets. Gold/silver ratio pulled back below the 78.00 level, providing additional support to silver markets. Gold/silver ratio moved lower as investors’ appetite for risk increased.

Currently, silver is trying to settle above the resistance level at $51.00 – $52.00. In case this attempt is successful, silver will head towards the next resistance, which is located in the $56.00 – $57.00 range.

Platinum Climbs Above $1450 As Oil Prices Drop 10%

Platinum soared as traders reacted to the major sell-off in the oil markets and focused on weaker dollar and falling Treasury yields. High oil prices hurt global economy and reduce demand for platinum, which is dependent on industrial demand. Palladium markets gained 7.5%, providing additional support to platinum.

It looks that short-covering served as an additional positive catalyst for platinum. Short-sellers were caught off guard by surprising developments in the oil markets.

From the technical point of view, platinum attempts to settle above the resistance level at $1440 – $1460. In case this attempt is successful, platinum will head towards the next resistance level, which is located in the $1520 – $1540 range. A move above the $1540 level will push platinum towards the $1600 level.

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