Gold futures fluctuated in a tight range slipping into the US session to reflect their longest daily losing streak since the beginning of October 2016 with the US dollar rising since January 22, 2017 according to the inverse relationship between them Amid a lack of economic data by the US economy on Monday because of the Veterans Day holiday in the United States.
Gold futures for December delivery fell 0.28% to trade at $ 1,205.20 an ounce, after hitting a low of 1199.80 and the lowest since October 11 compared to the opening at $ 1,225.10 an ounce. The US dollar index rose 0.44% to 97.33, the highest level since the beginning of last year compared to the opening at 96.90.
Gold holdings at SBDR Gold Trust, the world's largest gold-backed fund, last Friday stabilized for a second straight session at 755.23 metric tons, the lowest level since early this month. Gold ended last month's longest monthly loss rally since late 1996, rising in October for the first time in seven months.
Technical analysis:
The price of gold showed negative trading to reach our next target at 1198.00, awaiting further downside under the influence of the previously completed double top pattern
The price of gold is negatively impacting the pivotal support 1208.40 and moving below it now, supporting the expectations for the extension of the downside wave over the short term and intraday basis, noting that our next targets are at 1198.00 then 1180.00, while stability below 1223.00 is important for the continuation of the expected decline for today.
The Stochastic is currently trading near the saturation area and the SMA 7 is pushing the price for further decline supported by the SMA20 and SMA50.
The trading range for today is among the support at 1190.00 and resistance at 1224.50.
Support and resistance:
Support: 1198.00-1190.00-1186.60-1180.0
Resistance: 1208.40-1212.00-12118.00-1224.50
The general trend for today is bearish.