Gold prices dipped lower on Tuesday but trade higher on Wednesday morning, weighed by the US tax reform and a weaker US dollar. Gold gained 0.36%, trading at $1268.70 as of 10:30 GMT.
The U.S. Congress is expected to begin voting on Tuesday on a tax bill which proposes the biggest change to the U.S. tax system in more than three decades. The House of Representatives vote is expected to start voting on Tuesday afternoon, with the Senate vote expected to follow later.
Yesterday, a bounce back in US Treasuries following stronger-than-expected housing data, limited gains in the precious metal.
Technical View
Gold’s daily chart has formed a “Falling wedge” pattern which holds inside the bearish channel. Gold was trading in an uptrend in the previous sessions, however, price action is still in a correction.
The market is expected to continue the same trend and the upside rally could test $1268-$1272 level in the upcoming sessions. Resistance holds at $1272 and support holds at $1255.