Gold: drops to $1,245 on legislation to extend funding for the U.S. government

  • Gold bulls move out of the way as DXY turn better bid again.
  • US politics remains the driver.

Gold has been making fresh lows in the NY session towards the close with the DXY up in a modest spike from 93.55 to 93.67 in recent trade. Gold is currently trading at $1,247.88 spot below the 200-D SMA at $1266.92 having traded at a high of $1264.67 and having made a low of $1246.10 so far for the session at the time of writing. 

USD/JPY up for the day but still far from 113.00

Washington update on legislation

Fueling a bid in the dollar, and while we await the passage vote later in the session, legislation to extend funding for the U.S. government through Dec. 22 has cleared a procedural hurdle in the House of Representatives on Thursday which has taken some of the risks out of the possibility of a government shutdown. 

Gold levels

A fresh low of 1245 has been scored and with the MA's sloping deeply into negative territory with 1235 as the next target. RSI (14) on the daily sticks is now at 31 while the momentum indicator drops sharply lower as well. 1263 is a key resistance on a reversal of 1298's downside.`

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