Drop In S&P 500 Will Support Gold Prices
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Yesterday’s close: Gained almost $8 on the session to settle at 1283.7
Fundamentals: Tax-reform is in the spotlight with the House Ways and Means Committee redrafting their bill and Senate Republicans said to release their own version. A failure to show progress this week will help boost Gold. President Trump’s $250 billion in China deals have grabbed headlines but is doing very little to help equity markets. Traders should keep an eye on the S&P and weakness will bring support to the metal.
Technicals: Price action settled clearly above resistance at the 1280.5-1281.6 level and now eyes the 1291.3-1292.9 level in order to begin to squeeze shorts ahead of the weekend. The session high comes in at 1289 and we want to see follow through on the session in order to hold this positive momentum. The bears look to reject resistance and suppress price action back below 1280.5-1281.2, which includes the 100-day moving average, to regain an edge.
Resistance – 1291.3-1292.9**, 1298.4-1300**, 1308.4-1312.6**
Support – 1280.50-1281.2**, 1262.8-1269***, 1243.6**