Gold hits key resistance

Markets are focused on the policies of US President Donald Trump, who took office on Monday. Bloomberg reported: “Trump’s policies have caused volatility in markets, traders are heeding warnings about currencies...

Trump announced plans to impose tariffs of up to 25% on products imported from Mexico and Canada by February 1. He also promised to accelerate US energy development and lift restrictions on oil drilling in most of the US coast.

Asian and European stock markets traded mixed overnight. US stock indexes are expected to open higher and hit two-week highs when trading in New York begins.

In key overseas markets, Nymex crude oil futures fell sharply, trading around $76.00 a barrel. The yield on the benchmark 10-year US Treasury note is currently at 4.582%. There is no major US economic data due on Tuesday.

Technically, the February gold futures are tilted to the upside, giving the short-term bulls an advantage. The buyers’ objective is to push the price above the key resistance at the December high of $2,761.30. Conversely, the sellers want to push the price below the strong support at $2,650.00.