• Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday after the defeat of U.S. President Donald Trump's healthcare bill.
• The most active gold contract for April delivery rose 7.2 U.S. dollars, or 0.58 percent, to settle at 1,255.70dollars per ounce.
• Investors are concerned that since this bill failed to pass the U.S. Government's lower chamber, it could be a sign that President Trump's economic agenda of tax cuts and infrastructure spending may be much more difficult to achieve than expected.
• The U.S. dollar also reacted poorly to the failure of President Trump's bill, as the U.S. Dollar Index fell by 0.19 percent to 99.19 as of 1900 GMT. The index is a measure of the dollar against a basket of major currencies.
• Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
• Technically, April gold futures prices closed near mid-range today and hit a four-week high. The gold bulls have gained the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at today’s high of $1,261.00 and then at the February high of $1,264.90. First support is seen at today’s low of $1,245.50 and then at $1,240.00. Wyckoff's Market Rating: 5.5
• Silver for May delivery added 36 cents, or 2.03 percent, to close at 18.108 dollars per ounce.
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