Gold was experiencing a downward trend in the past few days
By Daisy Joseph
Gold was experiencing a downward trend in the past few days as US dollar strengthened. Now that the USD has lost its hold on the market after Trump’s warning against strengthening of the currency, gold prices are picking up. The geopolitical tension has forced the investors to look for commodities.
On Thursday, gold prices were slightly higher. However, the upward trend wasn’t monumental because the investors are cautious. The upcoming French presidential election could bring about a major change in the European economy. The XAU/USD pair was trading between $1.283.35 and $1.1.276.62. The bulls experience medium term technical benefit in the market.
The intraday resistance was maintained at 1283.40 and there is not a huge change in the positioning of gold. The charts all indicate that there is not a strong momentum as expected with gold prices. While the support is in the 1277.35 to 1276 region, falling back to 1265 could pull the market in the backward direction. Bulls are hoping to push the price beyond 1283.40 to experience some profit beyond the 1289/7 level. The bears on the other hand will be willing to wait until the market reaches the 1295/2 level.
Even though investors have turned their head towards commodities, their interest in the stock market has not diminished. The tax reformation bill is one of the important tasks of the Trump administration. The political risks may delay the process, but the reformations will be introduced sooner rather than later to boost economic growth in 2018.