GOLD continued it bullish counter move from the late December 2016, and continuing the bullish trend in non-volatile manner after massive sell off in 2016. Yesterday, USD had some pressure after the Unemployment claims positive report which resulted the price to proceeding down toward 1,218.91. In few weeks, Trump will be revealing the tax plan where the increase in tax on assets may result to fall in GOLD again. As there is no hint of increase of rate hike in USD as of Federal Reserve President Charles Evans speech, so far it is expected that without any intervention from Trump with his new plans on assets like GOLD, GOLD is expected to show some bullish momentum against the USD.
Now let us look at the technical view, currently, market is trying to retest the support zone between 1195.80 to 1218.91. If the price rejects the bears in this support zone with any daily candle we will be looking forward to buy with a target toward 1,245 as first target and 1,299 as second target for the bullish move. On the other hand, if the price breaks and closes below the lower boundary of support zone i.e. 1,195.80, the bullish bias will be changed to bearish and we will target 1,118 as the downward target in this pair.
