The precious metal surrendered some of its daily against the USD after President Donald Trump in a recent interview with the Associated Press announced that he was going to unveil a new tax plan last week, which includes a massive tax cut for individuals and businesses. After losing 2$ following the announcement, the XAU/USD found support at $1284 and is trading at $1284.80, still up 0.23% on the day.
The knee-jerk reaction to the announcement brought a fresh wave of greenback buying interest and pushed the US Dollar Index to a new session high at 99.94. However, the momentum quickly faded away as the market volume wasn't enough to carry the greenback higher against its rivals.
Looking at the weekly graph, we see that the XAU/USD was able to make a technical correction following the previous's weeks massive gains and it on its way to a negative weekly closing.
The metal could encounter the first resistance at $1290 (Wednesday's high) ahead of $1295 (Monday's high) and $1300 (psychological level). To the downside, supports are located at $1278 (daily low), $1272 (Apr. 12 low) and $1261 (Apr. 4 high).