Gold prices remained unchanged on Friday as gains were limited by a rise in the dollar amid growing investor optimism on tax reform following reports indicating that Republicans secured enough votes for the bill passage, enhancing the dollar, while limiting gains in the precious metal. CNBC, citing two sources, said Marco Rubio will support the final Republican tax bill after the GOP made changes to win his vote.
Marco Rubio, earlier this week, had said he would not approve the GOP tax plan unless it raises the refundable portion of the child tax credit currently at $1,100. After the Federal Reserve interest rate decision to raise rates, and maintain its outlook for additional monetary policy tightening, gold prices snapped a three-week losing streak after it rose sharply.
The 4hr technical chart of Gold future market has formed “Falling wedge” pattern which has already broken the resistance line ascending in bullish momentum. The last few sessions seem consolidated above the pattern which indicates that, the market has a chance in rallying on bullish trend in the upcoming sessions. The upside rally might test $1264-1268(28430-28530) levels and further more in the upcoming sessions. Resistance holds at $1264(28430) and support holds at $1252(28130).