FxWirePro: Gold trades lower on Trump Tax pledge, good to sell on rallies
Major support - $1218 (100- day EMA) Major resistance - $1248 (150- W MA) The yellow metal declined sharply after hitting fresh three month high yesterday. Gold has fallen almost $20 from the high of $1244.80 on Trumps t…
The yellow metal declined sharply after hitting fresh three month high yesterday. Gold has fallen almost $20 from the high of $1244.80 on Trumps tax pledge and U.S rate hike expectations. It is currently trading around $1225.
The surge in U.S equities and dollar that took place yesterday was mainly due to new tax reform plan to be announced by Donald Trump next week.
Gold major resistance is around $1248 (150- day MA) and any break above confirms major trend reversal, a jump till $1278 (61.8% retracement of $1375 and $1122) is likely.
On the lower side, immediate support is around $1218 (100- day EMA) and any indicative break below targets $1200/ $1183 (50% retracement of $1122 and $1244.83).
It is good to sell on rallies around $1230-$1232 with SL around $1245 for the TP of $1200/$1183.
