Authored by Joseph Vartanian, Senior Broker at Halifax America
The Gold Market has been one of the most unpredictable markets in 2017. The market is currently trading at $1279 level at the time of this writing. The Market is trading below the key $1300 psychological level, currently holding a bearish posture. Short term resistance comes in around the $1284-$1285 level. Any momentum to the downside should look to test the $1269 level and the most recent lows of $1262.80.
The fundamental side of the equation does not look too promising as well for bulls. There were reports that John Taylor (who is considered the most hawkish of the names put forward for Fed Chair nominee) is now viewed as the favorite to replace Janet Yellen. The market sold off once this news was announced. Another key factor may any new developments in the tax reform saga with Congress. Any positive news on this front should be supportive of equity prices and provide another bearish catalyst for precious metals. Any surprising geopolitical news, particularly in North Korea and more recently Venezuela could trigger some flight to quality buying. However, the most likely scenario looks to be downward, with a test of the recent lows around the $1265 level.
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