Gold Prices moved lower towards US$1,265/OZ mark,weighed down By strength in US Dollar. meanwhile, geopolitical developments faied to provide any support to the precious pack, in this regard, US president trump intends to commission US embassy for israel in jerusalem ,a move which is a departure from decades of existing US policy and risks annoying its various middle east Allies. moreover, trump is also expected to endorse jerusalem as israel`s capital.
Oil futures pared recent gains, with retracement clearly attributed to profit taking. meanwhile
markets are also keeping an eye on the growth in US Crude oil production with levels reported to Be a pproaching a two year high of 9.63 mbpd. OPEC and high degredd of compliance on the production accord is providing an element of stability to the energy markets.
Gold prices dropped to six-week lows on Tuesday as dollar continued strong on the back of recent investor cheerfulness surrounding tax reform. The investor expectations that the Senate and House of Representatives will reconcile their respective bills, ensuring that the final bill will reach President Donald Trump for approval before year-end, grew to a great extent. The expectations that the U.S. Federal Reserve will raise interest rates for third time this year at the conclusion of its next meeting on Dec.13 weighed on the dollar.
Gold future daily technical chart has formed “Rectangle chart pattern”. The pattern indicates a parallel momentum in the last few months. The last session has been successfully bearish inside the channel and has ended up meeting with its support level. If support holds strong then market might retest the same and turn bullish. The upside rally could test $1270-1273(28920-28995) levels in the upcoming sessions. Alternatively, if the market breaks the support, then bearish momentum will continue its rally and could test $1263-1260(28745-28670). Resistance holds at $1275(29050) and Support holds at $1265(28795).