Gold prices settled higher on Wednesday and trade slightly lower on Thursday morning after the US Senate approved the tax bill which should pressure gold prices. Gold continues to trade in a tight range ahead of Christmas holiday.
Goldman Sachs reported they expect gold to fall to $1,200 an ounce by mid-2018 as safe-haven demand, underpinning gold prices, is likely to fade amid US tax reform and a smooth changeover to a new Fed chair.
Technical view
The 4H chart continues to trade in the “Falling wedge” pattern which indicates a continuation of the bearish momentum. Although gold prices pushed upward in the previous session, the technicals confirm that gold still in a correction stage.
Resistance holds at $1278 and previous resistance become the support line at $1268.