After falling sharply yesterday, gold is trading flat this morning. The precious metal was no match against the US dollar yesterday, as the currency rose after Congress passed the 2018 budget resolution. As this paves the way for Trump's tax reforms, optimism is rising that Trump's agenda is about to become reality. US economic data also continues to shine, with better-than-expected factory orders figures and trade balances released yesterday. Strong growth and tax cuts on the horizon means that the 'Trump trade' may be returning. If future inflation expectations continue to rise from here, this may be the start of much lower future gold prices.
While gold is weak, it is currently approaching oversold territory, and may be in danger of pullbacks over the coming days. After its most recent peak close to $1,350, gold is now well under $1,300. The precious metal is currently trading below $1,268.