In the start of today’s trading, and with the markets back to work after the holidays,gold had a better chance in achieving more gains, reaching to $1279 an ounce, the highest price for the metal in 3 weeks. Gold is moving within an upward channel, as shown on the daily chart, but within tight ranges, even with strong pressure on the greenback after the passage of the US tax bill. It seems that the increased move towards cryptocurrencies after the recent record gains, especially the for the Bitcoin, contributed to reduced interest in buying gold, as the recent gains were lower than usual in light of a lower dollar.

4 central banks announced their monetary policies, with the US Federal Reserve rising their interest rate for the third time this year and a promise of 3 more raises next year, with fears of lower inflation in the country. While the ECB and the Swiss Central Bank and Bank of England kept their policies as is. Gold’s bounce wasn’t as strong as usual under these conditions, and it seems that the Bitcoin mania has reduced the precious metal’s appeal.

Gold prices will monitor the updates on the investigations with officials from Trump’s campaign regarding claims of Russian interference in the American Elections, which shoock confidence in the US dollar again until the conclusion of the investigations and the announcement of the results. There was lower than expected growth in the US economy, and the unemployment claims rose, with the only positivity coming from Philly Manufacturing Index and the New House Sales.

Technically: Gold prices will have a strong bullish move today if the prices move towards the resistance level at 1285, the psychological peak at 1300. The nearest support levels for gold are currently at 1271, 1265 and 1253. We still prefer buying the gold from every bearish level. In light of market closure due to holidays this week and early next week for Christmas and New Year, traders need to be alert of price gaps due to markets coming back in interrupted form sometimes, and it is better to avoid trading until the markets are fully back to normal.