Gold futures rose during the US session yesterday to witness the highest of June 19, excluding the US dollar index for the third session in five sessions of the lowest since 20 November last according to the inverse relationship between them following the developments and economic data that followed On Wednesday the largest economy in the world.
Before closing at a low of 1266.7 near the support level of 1262.8
We followed the US economy to reveal housing market data with the S & P Composite House 20 Index, which showed a slowdown in growth to 5.0% from 5.2% in the previous September reading, beating expectations of 4.8%.
This came ahead of the December reading of the Richmond Manufacturing Index, which showed a contraction to 8 versus growth from 14 in November, in contrast to expectations of a 16-year expansion.
Otherwise, the US president said on Tuesday that the government closure would continue until an agreement was reached, including the construction of a wall, fence or barrier along the border with Mexico, adding that the funding of the wall at $ 5 billion is negotiable but complicated, In seeing a border wall, while expressing confidence in Treasury Secretary Sevin Menuchin's decisions that the Federal Reserve is raising interest rates at a rapid pace.
Investors are currently waiting for the US economy to read the Jobless Claims reading for the week ending December 22, which could reflect a 6K increase to 220K in the previous week's reading. This month, down by 5 thousand applications to 1,673 thousand in the previous weekly reading.
In conjunction with the release of housing market data, which may reflect the acceleration of house price growth to 0.3% versus 0.2% in October before we see new home sales, which may rise 4.0% to 566 thousand homes compared to a decline of 8.9% To 544,000 in October, leading to a reading of the consumer confidence index, which may indicate a contraction of the widening to 133.0 versus 135.7 last month.
Technical Analysis
Gold continues its bullish course with steady trading above the support level at 1262.8. We need to close the day above 1270.0 to confirm the bullish movement
Strong gold is gaining from the moving averages that are moving in a bullish path with the moving average 20 surpassing the support level 1238.4 and moving average 7 near the price below.
The Stochastic is moving towards the overbought area in a positive signal for price action, but one must be aware of any possible cross-section which will lead to price correction.
The trading range for today is among the support at 1260.00 and resistance at 1285.00
Support and resistance:
Support: 1262.8-1257.00-1245.2
Resistance: 1270.00-1286.9