Gold futures rallied during the Asian session, negating the positive stability of the US dollar index, indicating a rebound to the third session of its lowest since November 22 according to the inverse relationship between them on the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world.
Gold futures for February delivery rose 0.23% to currently trade at $ 1,250.10 per ounce, compared to the opening at $ 1,247.20 an ounce, while the US dollar index rose 0.01% to 97.40 levels. Its lowest in three weeks compared to the opening at 97.39.
Investors are eyeing the US economy to release inflation data with the release of the Consumer Price Index (CPI), which may reflect stability at zero levels versus 0.3% in October, while the core reading of the index itself may show a 0.2% From its October level. The annual reading of the index may reflect a slowdown in growth to 2.2% from 2.5%.
In the same context, the annual Core CPI reading may show growth accelerating to 2.2% from 2.1% in the previous October reading, before we see the US Treasury Department reading the Treasury budget, which may reflect a widening deficit to its value Compared to $ 100.5 billion in October.
Technical Analysis
The price of gold is trading today at a quite high, signaling the price attempt to resume the expected bullish trend over the medium term
Where gold failed to breach the resistance 1251.4 after approaching yesterday and fell to support level 1238.4. Consolidate more stability and support from the SMA 7 which is trading close and below to the price giving it more stability to continue and test resistance again
Note that trades should remain above the 1238.4 level to keep the upside move.
The stochastic has lost momentum and is out of the overbought area, signaling a correction to the price movement towards the previous support level.
The trading range for today is among the support level at 1238.4 and resistance at 1251.3
Support and resistance:
Support: 1238.8-1227.4-1221.9
Resistance: 1251.4-1257.00-1262.8
The expected trend for her today: uptrend