Gold Daily Analysis – November 20, 2017
Gold prices edged higher on Friday but trade slightly lower on Monday morning. The precious metal was boosted by a weaker dollar that weakened over the tax refoem uncertainty.
For the week, gold prices ended up 1.75%, its strongest weekly performance since early October.
On Monday morning, gold is trading at $1291, down -0.37% as of 9:00 GMT.
The U.S. dollar index which measures the greenback’s strength against six major currencies was down 0.25% to 93.61 in late trade. For the week, the index was down 0.74%, its second consecutive weekly decline.
On Thursday, the House of Representatives passed a bill that would lower corporate taxes and cut individual taxes for most households in 2018.
The previous week, Gold has clearly been bullish by trying to break all possible higher resistance. In that rally, the last market session has successfully reached a fresh high which formed a “Megaphone chart pattern”.
As prices hit channel’s resistance line, the market is expected to retest the same and turn back to negative momentum in the upcoming sessions. Key Resistance holds at $1295 and support holds at $1287.50.