Gold futures traded in a narrowly bullish range during the Asian session to see their rebound to its fourth straight session since December 4 as the US dollar rebounded to its fourth high since June 17, 2017. On the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world in conjunction with the proceedings of the meeting of the Federal Open Market Committee in Washington.
Gold futures for February delivery rose 0.06% to currently trade at $ 1,254.40 an ounce, showing a two-week drop from the opening at $ 1,253.50 per ounce, amid a decline in the US Dollar 0.07 index. % To 96.87 compared to the opening at 96.91.
Investors are eyeing the US economy for the current account reading, which could reflect a widening deficit to $ 125 billion versus $ 101 billion in the second quarter before we foretell the release of housing market data with the release of the Existing Home Sales Index, which may reflect a 0.4% To 5.20 million from 1.4% at 5.22 million last October.
This comes in the midst of a meeting of the Federal Open Market Committee in Washington, where monetary policy makers are expected to raise federal funds rates by 25bp for the fourth time this year to between 2.25% and 2.50% And go ahead with cuts in government bond and mortgage bond purchases by $ 50 billion per month.
It is also expected that the Federal Committee will reveal after the meeting today its expectations for growth rates, inflation and unemployment in addition to the future interest rates of short-term reference for the next three years, amid the expectation of any hints about the future tightening of monetary policy and the pace of raising interest on federal funds in the coming period in shadow The US administration has been critical of the Fed's hard-line policies and the recent momentum of economic data
Technical Analysis
Gold is trading around 1250.00 and gold is showing a quiet positive move to gradually advance towards our positive target at 1262.50, which supports the continuation of the bullish scenario over intraday basis within the corrective correction channel, supported by the 50 moving average that carries the price from the bottom. And the entry of the stochastic index into the saturation area of the purchase
Keep in mind that breaching the target will extend the gold gain to 1286.70 as the next stop, while stability above 1238.30 is an important requirement for the continuation of the expected rally.
The trading range for today is among the support at 1238.60 and resistance at 1265.00
Support and resistance:
Support: 1238.6-1227.00-1221.9
Resistance: 1250.30-1257.0-1262.8
The general trend for today is bullish