Gold waits for tax reforms; Euro at 4-month lows, but will it extent the decline?Posted on Wednesday, November 8 2017 at 3:25 pm GMT+0000
Gold waits for tax reforms
Despite political tensions, gold remains steady near $1250 per ounce.
Failure of the gold to rise is due to dollar’s strength. The greenback continued its surge and touched a 3-1/2 month high, on positive growth and labor market data, which raises the possibility of a third Fed-rate hike in December.
Technically the gold’s Bullish outlook is expected to hold as long as prices remain above 1260$. Another leg higher continues to remain expected especially with heightened political tensions in the region as well as with North Korea. Any tax-cut delay in the coming days will increase the demand for safe havens and push gold to 1304 and then 1315.
Euro at 4-month lows, but will it extent the decline?
The euro reached a strong support area near a four-month low.
The 1.1550 area is a strong support area, but recovery possibilities remain limited as concerns about divergence in monetary policy between Europe and the United States are remerging, especially after the extension of the stimulus program in Europe and the possible monetary policy tightening by the new Fed Chair.
Recently, consumer price and German industrial data missed economists’ expectations, and may lead to a weaker euro in the forthcoming days while waiting for new improvements in the economic picture.