FxWirePro:Gold hits 3- week high as US Senate to delay corporate tax cut, good to buy on dips
Gold is holding near 3- week high on slight weak dollar. The yellow metal has shown a minor jump till $1288 and is currently trading around $1284. US Senate version of tax plan was released yesterday and it confirms that…
Gold is holding near 3- week high on slight weak dollar. The yellow metal has shown a minor jump till $1288 and is currently trading around $1284.
US Senate version of tax plan was released yesterday and it confirms that corporate tax cut will be delayed by a year. GOP Senate leaders announced a tax package that it will delay cutting corporate tax from 35% to 20% until 2019.
US Dollar index has shown a minor dip till 94.42 after hitting high of 95.15. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94.84. The pair is facing major support near 94.29 and any break below confirms minor weakness till 94 (20- day MA)/93.78 (55- day EMA)/92.60 likely.
Technically gold is facing near term resistance around $1291 (Oct 19th 2017 high and 61.8% fibo) and any break above will take the pair to next level till $1300/$1309. Further selling in gold can be seen only below $1260.
Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal. The minor support is around $1277/$1270.
It is good to buy on dips around $1280 with SL around $1271 for the TP of $1291/$1300.
