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  • Gold printed intraday highs above $1,230 a few minutes before press time, as the US dollar – its biggest nemesis – is being offered on speculation that Democrats may gain control of the lower House.
  • The safe-haven metal faces stiff resistance at $1,240. A violation there would strengthen the bull grip on the yellow metal.

Gold is reporting moderate gains at $1,229, having clocked a high of $1,232 earlier today.

The positive price action is likely associated with the drop in the US dollar. The greenback is being offered across the board in Asia as Democrats seem to be gaining ground in Florida.

It is widely believed that Democrats, if they take control of the lower house, would use the majority to pursue investigations into Trump’s Russia ties and Russian meddling, leading to a political turmoil in Washington.

Also, a majority Democratic House may move to raise at least five taxes related individual Americans, corporations, and heirs of the dead.

As a result, the dollar index – currently down 0.37 percent at 95.96 – may drop further, lifting the yellow metal higher if Democrats continue to put on a good show. As per latest reports, Democrats are set to take House seat from Republicans in key Virginia race.

Gold Technical Levels

XAU/USD

Overview:
       Last Price:  1230.52
       Daily change:  3.9e+2  pips
       Daily change:  0.318%
       Daily Open:  1226.62
Trends:
       Daily SMA20:  1227.86
       Daily SMA50:  1211.76
       Daily SMA100:  1207.15
       Daily SMA200:  1245.57
Levels:
       Daily High:  1235.94
       Daily Low:  1223.2
       Weekly High:  1237.6
       Weekly Low:  1211.8
       Monthly High:  1243.43
       Monthly Low:  1182.54
       Daily Fibonacci 38.2%:  1228.07
       Daily Fibonacci 61.8%:  1231.07
       Daily Pivot Point S1:  1221.23
       Daily Pivot Point S2:  1215.85
       Daily Pivot Point S3:  1208.49
       Daily Pivot Point R1:  1233.97
       Daily Pivot Point R2:  1241.33
       Daily Pivot Point R3:  1246.71