Gold up as Trump tour arrives in China


The USD gave up some of its gains earlier as fresh doubts emerge about the tax cut legislation, which still may require Obamacare repeal to be funded. Indeed, Senate leadership is reportedly mulling a 1-year delay in implementation of corporate tax cuts in order to comply with that institution’s rules, according to a WaPo report. A year since the election and in control of all branches, the government has yet to score a significant legislative victory. Trump’s Asian junket has landed in China, which raises the stakes amid major security and trade issues.

Gold was a major beneficiary of USD weakness as the key commodity rallied to 1282.40, 46 cents short of yesterdays high. Current H1 resistance sits at 1281.26, with the moving averages nicely aligned from last nights low and the RSI 63 and rising. Support sits 1279.20 on H1 and 1277.10 on the H4.  I am  LONG Gold from 1275.84 on the Daily chart with initial targets at 1289.00 and 1300.00. 

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Stuart Cowell

Senior Market Analyst


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