Gold Today – SELL Gold at CMP 29535 for Small Target 29465 – 29410 with SL Above price 29601
Gold prices edged higher settled at $1278.90/oz, up $4.70 amid an uptick in safe-haven demand as investor uncertainty over the outcome of tax reform continued while a slump in sterling boosted the dollar which capped gains in the precious metal. The House of Representatives is expected to vote this week on a major tax reform bill amid uncertainty over the outcome of the bill after the head of the House of Represents’ tax-writing committee said on Sunday he would not accept elimination of a federal deduction for state and local taxes.
Uncertainty over the progress of the Republican tax plan has weighed on the dollar, helping gold prices snap its three-week losing streak on Friday but traders expect the precious metal to make its next significant move higher or lower when the Fed members meet in December.
Also lifting sentiment on safe-haven demand were reports that British Prime Minister Theresa’s Conservative party had agreed to sign a letter of no-confidence in her as some members doubted Mrs. May ability to lead the UK into a successful Brexit. Rising UK political uncertainty pressured sterling to one-week lows and supported a move higher in the dollar, capping gains in the gold futures.
In the week ahead, inflation readings will matter most for global financial markets, with the US, UK, euro zone and Canada all set to release CPI data. Investors will also be focusing on the Central Bank Communications Conference hosted by the ECB, with a panel discussion including the heads of the European, U.S., British and Japanese central banks in the spotlight. Technically market is getting support at 1273.80 and below same could see a test of 1270.40 level, And resistance is now likely to be seen at 1280.80, a move above could see prices testing 1284.20