Gold prices fell on Monday, posting their biggest one-day drop in five weeks as the dollar and stocks rallied on news Hillary Clinton would not face criminal charges over her use of a private email server. This boosted her chances of winning the U.S. presidential election on Tuesday. The final result is expected on Wednesday. If Clinton wins, there's going to be a further correction in prices and gold may even go down to $1,250, traders said. Stock markets around the globe surged along with the U.S. dollar, while the VIX index, dubbed the "fear index" of U.S. stocks, posted its biggest one-day fall in over four months. These lifted risk appetite and weighed on gold.
On the technical front, resistance on gold was seen around the key mark of $100. Without breakthrough, sharp losses can hardly take place. Support can be found around the 200-day moving average of $1,270 an ounce. Under current circumstances, downside will be limited in near term.
Silver opened lower and pared some losses later at $18.19 an ounce, diverging with gold. On the technical front, it lingered between the 50-day moving average at $17.50 and 200-day moving average at $18.50. In historical trend, silver can hardly buck the downside trend of gold. Investors shall be cautious about possible short-covering.

 
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