The precious metal gave up some of its gains after president Donald Trump ‘s announcement, in an interview with the Associated Press, which will unveil a new tax plan next week, which includes a massive reduction of taxes for individuals and businesses.
After losing $ 2 after the announcement, the pair XAU/USD found support at 1284 dollars and is trading at 1284.80, even a 0.23% on the day. The reaction precipitated the announcement brought a new wave of buying interest to the greenback and pushed the dollar index to a new high of the session at 99.94.
However, the momentum quickly faded as the market volume was not enough to bring the green ticket to the upside against its rivals. Looking at the weekly chart, we see that the pair XAU/USD was able to make a technical correction after the massive gains of the previous weeks and is well on the way to a weekly closing was negative.
The metal may find its first resistance at 1290 (max on Wednesday) before 1295 (maximum of Monday) and $ 1300 (psychological level).
To the downside, support is located at 1278 (daily minimum), 1272 (April 12) and 1261 (4 April).