NEW YORK (Reuters) - Gold futures traded in a narrowly bullish range during the Asian session as the US dollar index declined, showing a rebound to the second-high session since the end of last November, according to the inverse relationship between them on the eve of developments and economic data expected Tuesday by the largest US economy World economy.
Gold futures for February delivery rose 0.15% to currently trade at $ 1,251.30 per ounce from the opening at $ 1,249.40 per ounce, amid the decline of the US dollar index to 0.12% to 97.10, indicating a rebound for the second session from the top in two weeks compared to the opening at 97.22.
Investors are currently looking for the US economy to release the Producer Price Index (PPI), an initial index of inflationary pressures, which may reflect stability at zero levels versus 0.6% growth in October, while the same annualized reading may show growth slowing to 2.5% versus 2.9%. % In the previous annual reading for the month of October.
In the same context, the core reading of PPI may show a slowdown of 0.1% vs. 0.5% in October, and the core annualized reading of the same index may reflect a slowdown in growth to 2.5% from 2.6% in the previous October reading , And comes hours before the disclosure on Wednesday on the reading of the consumer price index, which may confirm the slow growth of inflationary pressures during the past month.
Technical Analysis
Gold continues to move within the up channel. yesterday it has corrected the uptrend and retreat towards the 1238.38 level. If the price is above this level, the bullish trend will remain intact towards resistance 1251.3 and then 1262.8
SMA 7 moves under and near the price and gives it more stability to the upside and the SMA20 -SMA50 are moving below the price and giving it positive pressure to climb
The Stochastic is moving within the overbought area in a sideways path that is consolidating the up trend
The trading range for today is among the support at 1238.38 and resistance at 1251.32
Support and resistance:
Support: 1238.3-1227.38-1221.9
Resistance: 1251.32-1257.00-1262.8
The general path is up