FxWirePro: Gold trades lower as US Senate passes tax bill, good to sell on rallies

Gold has declined sharply yesterday after a jump of almost $20 from the day’s low on strong US dollar. US dollar index shown a recovery from the low of 92.60 on Friday and is currently trading around 93.12. The yellow metal hits low of $1272 and is currently trading around $1274.24.
US Senate passed tax reform on Saturday morning by 51-49 vote that differs from that passed by house. The corporate tax has been reduced from 35% to 20% from 2019% and smaller individual’s tax cut will end at 2026.
US Dollar index has formed almost a double bottom at 92.50 and started to jump from that level. The major resistance is around 93.60 (34- day EMA) and any break above will take the index till 94.25/94.60/95.19. The pair is facing support around 92.50 and any break below will take the index to next level till 92./91.62.
US yields declined sharply from the 2- week high at 2.44% after former National Security Adviser Michael Flynn will testify as Donald Trump directed him to make contact with the Russians. It has closed at 2.36%.
Technically gold is facing near term resistance around $1282 (50- day MA) and any break above will take the pair to next level till $1291/$1300.
Gold’s near term support is around $1267 and break below will drag the commodity down till $1262 (61.8% fibo).The yellow metal should close below $1262 (61.8% fibo) for major trend reversal.

It is good to sell on rallies around $1280-82 with SL around $1291 for the TP of $1263.

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