Gold prices are holding steady above the 50-day and 100-day moving averages as well as critical support sitting at $1218. This support level is based upon the .618% Fibonacci retracement level from a large data beginning in December 2016 when gold prices bottomed at $1124 per oz., up to the multi-year high that occurred $1369 per oz. 

This morning, the U.S. dollar traded slightly lower to a critical support level at 95.90 before recovering, gathering steam, and moving to much higher ground. As of 5:00 PM Eastern standard time, the dollar index is currently up almost 7/10% (+ 0.639 points) and fixed at 96.705.

Once again, the U.S Dollar index is the main driving force taking precious metals to higher pricing. Today’s $2.70 upside tick in gold was almost entirely due to the declining U.S dollar which has been the story for the past four days.

To my valued and esteemed subscribers,

The US dollar index surges past 97.40 to a 17-month high amidst the backdrop of political uncertainty in the UK and Italy. The US Dollar index is currently pegged at 97.405 after three consecutive strong sessions bring the index to levels it has not seen in over 16 months.

U.S. stocks tumbled in trading this afternoon with selling pressure a result of multiple factors.

After producing respectable gains throughout the week, U.S. equities reacted to two major events, as well. First, market participants reacted to the statement released by the Federal Reserve yesterday from this month’s FOMC meeting.

This afternoon the Federal Reserve concluded this month’s Federal Open Market Committee (FOMC) meeting. Immediately following the conclusion of today’s meeting, the Fed released a statement. There was no press conference held after the meeting.

Investors and market participants seem unfazed while bidding the U.S. equities up substantially following the midterm elections which resulted in the Democratic Party now controlling the House of Representatives. Although the Senate remains firmly in control by the Republicans, yesterday’s election gave Democrats the needed majority to control the House of Representatives.

Traders and market participants are quietly waiting to hear results from today’s midterm elections. In possibly one of the most important midterm elections held in recent history, the net results could have a profound impact on the financial markets.

This week could prove to be a monumental week with the midterm elections beginning tomorrow. According to Bloomberg politics, “The 2018 midterms are the most closely watched, most expensive, and most fretted-about congressional elections in memory.”