Gold 0.05% is trading flat after showing a good $25 jump in previous week on account of slightly dovish Fed.US tax bill has minor impact on US dollar -0.11% as holiday week starts. The yellow metal jumped till $1261.69 and it is currently trading around $1255.54.
The house and senate to vote on US tax bill this week. U.S republicans are confident that tax bill will be passed this week and will become law bill. The dollar gains but investors is on wait and watch mood until law passed. US dollar index -0.11% has shown minor jump from the previous week low of 93.28 till 94.03 and currently trading around 93.87.
On the higher side, near term resistance is around $1263 (233- day MA) and any break above will take the yellow metal to next level till $1269 (200- day EMA )/$1275 (55-day EMA ).
The near term major support is at $1236 and any violation below will drag the metal to next level till $1232 (161.8% retracement of $1305 and $1260.45)/$1223 ( 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 above $1262 with SL around $1255 for the TP of $1275/$1280.
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