Gold & EUR/GBP into the US elections

“US elections is not a straightforward binary event”, says Brenda Kelly and adds further that one needs to take into account what sort of policies Clinton/Trump would adopt on the fiscal front post elections.

Risky assets across the globe are enjoying a relief rally today largely due to FBI granting a clean chit to Clinton.

Watch this video to know whether the drop in gold seen today is a bear trap?

Key points

Gold – Kelly points to a falling channel formation on the charts and sees the low probability of a sustained rally even if Trump wins. She adds that the yellow metal could down by $10-$20 on Clinton victory.

EUR/GBP – Kelly says the Pound was clearly oversold and the corrective move largely represented the mean reversion. She adds over the longer term, hard Brexit is on the cards, which means the overall trend in EUR/GBP is very much active.