Gold futures traded in a tight range slipping towards the Asian session to see their rebound to its second highest session since Nov. 8, capping the US dollar's fifth decline in seven sessions from its highest since January 22 from In 2017 according to the inverse relationship between them on the eve of developments and economic data expected Tuesday by the US economy, the largest economy in the world.
Gold futures for December delivery fell 0.20% to currently trade at $ 1,222.80 per ounce, showing a two-week rally from the top of the week at $ 1,225.30 per ounce, while the dollar index The US 0.03% to the levels of 96.17 showing a continuation of the bounce from the highest since the beginning of last year compared to the opening at 96.19.
Investors are looking for the US economy to reveal housing market data with the Housing Starts reading and the Construction Permits Index reading last month. The Building Permits Index is expected to reflect a 0.8% rise to 1,260,000 versus 0.6% at 1,241K. The reading of the Construction Starts Index may show a rise of 2.4% to 1,230,000 versus 5.3% at 1,201,000.
Technical analysis:
The price of gold is showing a stable trading above SMA 50 and is gradually creeping towards our positive target at 1238.30, while stochastic negates positive attempts.
Therefore, we will maintain the positive scenario for the upcoming sessions as it did not break the 1208.40 level and stability with daily closing below it.
The trading range for today is among the support at 1210.00 and resistance at 1240.00.
Support and resistance:
Support: 1216.3-1211.3-1208.6
Resistance: 1225.00-1235.00-1240.00
The general trend for today is bullish.