Gold futures traded in a narrowly bullish range during the Asian session to see their rebound to its third-lowest session since December 4 as the US dollar rebounded to its third high since June 17, 2017 according to the relationship. On the eve of economic developments and data expected Tuesday by the US economy, the largest economy in the world and coincided with the speech of Chinese President Shi Jinning celebration of the fortieth anniversary of China's reform and opening up.
Gold futures for February delivery rose 0.05% to currently trade at $ 1,252.40 an ounce, showing a two-week drop from the opening at $ 1,251.80 per ounce, amid a drop in the US Dollar 0.05 index % To 97.05 compared to the opening at 97.10.
Investors are looking for the US economy to reveal housing market data with the Housing Starts and Building Permits reading for the last month. The Building Permits Index is expected to fall to 0.4% at 1,260K versus 0.6% at 1,263K. While the reading of the Construction Starts Index may indicate a slowdown in growth to 0.2% at 1.230 thousand homes, compared with 1.5% at 1,228 thousand.
Markets are also looking closely at the FOMC meeting to be held today 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 to between 2.25% and 2.50% and move forward in reducing the repurchase of government bonds and mortgage bonds.
The Federal Reserve is expected to unveil growth and inflation expectations as well as future short-term benchmark interest rates for the next three years, looking for any hints about the future tightening of monetary policy and the pace of raising federal funds over the coming period in shadow. The US president's criticism of the Fed's radical policies and the recent momentum of economic data.
Technical Analysis
The price of gold has rallied significantly to break the 1238.30 level and is approaching the 1250.00 barrier now, which reinforces the bullish scenario scenario suggested in our recent reports, noting that closing the daily candlestick above the first level will confirm the continuation of the bullish trend towards 1262.51. New will put the price under negative pressure with the main target at 1208.40.
Where the price returned to trade above the moving average 7, therefore we have the ideal arrangement to return to the bullish scenario. This is reinforced by the fact that there is a positive cross in the Stochastic, so the bullish trend is likely for today
Support and resistance:
Support 128.4-1227.30-1221.8
Resistance: 1251.30-1257.00-1262.8
The general path so today is bullish