Gold futures traded in a narrowly bullish range during the Asian session to see their fourth straight session bounce back since October 11 as the dollar index fell for a third session in five sessions from its highest since January 22 From 2017 according to the inverse relationship between them on the eve of developments and economic data expected Friday by the US economy.
Gold futures for December delivery rose 0.10% to currently trade at $ 1,215.60 an ounce, showing a five-week decline from the opening at $ 1,214.40 per ounce, amid a drop in the dollar index 0.5% to 96.99 levels, indicating a resumption of the bounce from the top since early last year compared to the opening at 97.05.
Investors are eyeing the US economy to release industrial data for the month of October with the release of the Industrial Production Index, which could reflect a slower pace of growth to 0.2% versus 0.3% in September, and a reading of the Energy Utilization Index Growth accelerated to 78.1% from 78.3% in September.
Technical Analysis:
The price of gold closed yesterday's trading above 1212.00, which is a positive factor and we expect the price to rise during the coming sessions, targeting the 1238.30 level mainly.
Therefore, the bullish trend will be likely over the intraday basis supported by moving above SMA 50, and the Stochastic is floating in the overbought area.
With a break of 1212.00 then 1208.40 will stop the expected rally and press the price to resume the bearish main direction again.
The trading range for today is expected among the support at 1200.00 and the resistance at 1230.00
Support and resistance:
Support: 1212.0-1208.6-1203.0
Resistance: 1219.0-1224.0-1230.0
The general trend for today is bullish