Gold futures traded in a narrowly bullish range during the Asian session amid the positive stability of the US dollar index according to the inverse relationship between them on the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world.
Gold futures for February delivery fell 0.06% to currently trade at $ 1,249.30 per ounce from the opening at $ 1,250.00 per ounce, while the US dollar index rose 0.03% to 97.07 compared to the opening at 97.04..
Investors in the US economy are looking forward to the reading of the index of claims for the week ending December 8th, which may reflect a decline of 5 thousand requests to 226 thousand applications in the previous weekly reading, while the reading of the index of continuing claims for the week may appear at the beginning of this Month increase by 19 thousand to 1,650 thousand in the previous weekly reading.
While the reading of the import price index, which may reflect a decline of 1.0% against 0.5% in October, while the annual reading of the same index may show a slowdown in growth to 1.3% versus 3.5%, before we see the Treasury US Treasury budget reading, which may reflect a widening deficit to $ 193.5 billion versus $ 100.5 billion in October.
Technical Analysis
There is no change in the movement of gold from yesterday as the price of gold continues to move in a narrow path and maintains its stability above the pivotal support 1238.30, keeping the bullish scenario intact as it is supported by the SMA 50, noting that our next main objective is at 1262.51.
Gold is trading below the resistance level 1251.4 on a bullish path and is tacking more stability and support from the moving average 7 which is trading near the price below and gives it more stability to continue the upside and test resistance again
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 key support 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