Gold prices dipped lower on Wednesday as rate hike expectations increased and Donald Trump's tax reform strengthen the US dollar. Economists expect that
Gold prices dipped lower on Wednesday as rate hike expectations increased and Donald Trump’s tax reform strengthen the US dollar.
Economists expect that the tax reform will be implemented soon after Trump finally released his plan. Republicans disclosed the plan to modify America’s tax code in a proposal that will include softer tax rate in order to help American companies. The tax reform also proposes to create three individual tax rates and double the standard deduction.
Technical view
Gold prices trade below the support of $1290. The bearish trend has extended and is likely to hit $1273 as the pattern has formed the “Descending broadening wedge”.
Gold 4H Chart
Currently, prices may drop to the next support level at $1273. Resistance holds at $ 1303.
