Gold prices remained unchanged on Friday and continue to trade slightly higher on Monday morning. It seems that gold investors await tax reform approval following reports that Republicans secured enough votes for the bill passage. Gold is currently trading at $1259, +0.18%.
CNBC, citing two sources, said Marco Rubio will support the final Republican tax bill after the GOP made changes to win his vote. Marco Rubio, earlier this week, said that he would not approve the GOP tax plan unless it raises the refundable portion of the child tax credit currently at $1,100.
After the Federal Reserve rate hike last week and the outlook for additional monetary policy tightening, gold prices fell sharply last week.
Technical view
The 4H chart has formed the “Falling wedge” pattern which has already broken the resistance line. However, the upside move is still a correction of previous week’s downtrend.
The correction might test $1264-$1268 levels in the upcoming sessions. Resistance holds at $1264 and support holds at $1252.