FxWirePro: Gold Daily Outlook

• Gold has shown a good recovery from the temporary bottom at $1236. The jump in yellow metal was mainly due to slight weakness in US dollar. US house passed Republican’s tax yesterday 227 to 203 and Donald Trump is now expected to sign tax bill into law. The major changes in the bill to reduce corporate tax from 35% to 21% with effective from 2018. It jumped till $1268 and is currently trading around $1266.53.
   
• US dollar index declined more than 100 pips after hitting high of 94.22.The index hits low of 93.16 and is currently trading around 93.39. US 10 year yield jumped sharply after breaking major resistance 2.4795 and hits 2.50%.
   
• On the higher side, near term resistance is around $1268 (200- day EMA) and any break above will take the yellow metal to next level till $1273 (55-day EMA)/$1279.50.
   
• The near term major support is at $1258 (23.6% fibo) and any violation below will drag the metal to next level till $1250/$1243/$1236 (88.6% retracement of $1204.70 and $1357). Overall bullish invalidation only below $1200. The minor support is around $1250/$1243.

It is good to buy on dips around $1260 with SL around $1254 for the TP of $1275/$1280.