Gold prices edged higher on Monday but trade lower on Tuesday morning as traders indecision over the outcome of tax reform continued and the focus turned into central banks panel discussion. Gold is currently trading at 1273, down -0.46%.
The head of the House of Represents’ tax-writing committee said on Sunday that he would not accept elimination of a federal deduction for state and local taxes. The House of Representatives is likely to vote this week on a major tax reform bill.
Investors expect the precious metal to make its next move higher or lower when the Fed members meet in December. Currently, according to the Fed watch tool, markets are pricing 96.7% chance for a rate hike.
As per the technical aspects, Gold future market continues in the same “Rising Wedge” momentum on 4-hour chart basis. The previous market session took the support of the channel’s support line and turned bullish.
The market is expected to continue the same trend which might extend up to a strong resistance level holding near $1281 in the upcoming sessions. Support holds near $1272 and a break could pull prices towards $1260.
This article was originally posted on FX Empire
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