Gold futures traded in a narrow, sloping range during the Asian session to see their fifth session rebound in six sessions since July 11, shrugging off the negative stability of the US dollar index on the back of economic news and developments on Monday. By the US economy, the world's largest economy.
Gold futures for February delivery fell 0.03% to currently trade at $ 1,241.00 an ounce, showing a five-month high from the opening at $ 1,241.40 an ounce, while the US dollar index 0.01% to 97.44 compared to the opening at 97.43.
Investors are currently eyeing the US economy for the New York Manufacturing Index, which shows a contraction to 20.1 versus 23.3 last November, before we see US housing data released with the housing index reading by the National Association of Home Builders Which may reflect an expansion to $ 61 versus $ 60 in November.
Markets are also looking closely at the FOMC meeting to be held on Tuesday and Wednesday in Washington, where monetary policy makers are expected to raise federal funds rates by 25 basis points for the fourth time this year. Between 2.25% and 2.50% and move forward in reducing the repurchase of mortgage and government bonds.
The Federal Committee is expected to unveil inflation and unemployment as well as the future of short-term benchmark interest rates for the next three years as investors look for hints about the future tightening of monetary policy and the pace of raising federal funds in criticism. US President of the Federal Policy and the momentum of the strength of economic data recently.
Technical Analysis
The price of gold broke the level of 1238.30 and closed last week below it, which puts the price in front of possible negative pressure in the coming period and stops the positive scenario suggested in our recent reports, paving the way to visit the levels of 1215.00 and 1208.40 as primary stations.
Therefore, the bearish bias will be likely in the coming sessions unless the 1238.30 level is breached and stability is once again above it.
The moving average has broken below 7 and is trading below it and is heading towards the 20 moving average which is expected to limit the price drop at 1231.7
While the Stochastic is still in its steady downtrend towards the oversold area, which is a negative pressure on the price and pushing it towards the support levels
Support and resistance:
Support:1238.6- 1227.3 -1221.9-1211.9
Resistance: 1251.30-1257.00-1263.80
The trading range for today is among the key support at 1215.00 and resistance at 1250.00
The general trend for today is bearish