Gold futures traded in a tight range sloping upward during the Asian session to stabilize near the top in six months amid the decline of the dollar index to its lowest since December 21 according to the inverse relationship between them on the eve of developments and economic data expected Friday By the US economy, the world's largest economy.
Gold futures for February delivery rose 0.18% to currently trade at $ 1,280.30 per ounce compared to the opening at $ 1,278.00 an ounce, amid the decline of the US dollar index 0.15% to 96.37 levels, Week compared to the opening at 96.51.
Investors are currently eyeing the US economy for the Chicago PMI reading, which may reflect a contraction of 61.4 versus 66.4 in November before we see housing market data released with the release of new home sales which may Reflecting a 0.9% rise versus a 2.6% fall in October.
On the other hand, we would like to point out that US President Donald Trump noted on Tuesday that the government closure, which falls within the seventh consecutive year, will continue until an agreement is reached to ensure the construction of a wall on the border with Mexico, adding that financing the wall at $ 5 billion is negotiable, Said he was confident of Treasury Secretary Sevin Menuchin's decisions and said the Federal Reserve was raising interest rates at a rapid pace.
Technical Analysis
The price of gold ended yesterday's trading above the resistance of the ascending channel, confirming the continuation of the upside over the intraday basis, which aims to test the level of 61.8% Fibonacci correction at 1286.70 as the next station.
Therefore, the bullish trend will be likely in the coming sessions unless the level of 1270.00 is breached and stability below it, noting that breaching the target level will extend gold gains to reach 1316.65 in the near term.
Gold derives the strength from rising from the moving averages which constitute a price stability factor for further upside.
The Stochastic is approaching the overbought zone to add more momentum to the Gold towards the 1286.9 resistance.
The trading range for today is among the key support at 1265.00 and resistance at 1300.00.
Support and resistance:
Support: 1262.8-1257.00-1251.3
Resistance: 1275.00-1286.9-1300.00
The general trend for today is bullish.