Gold futures traded in a tight range in the Asian session as the US dollar index fell against the backdrop of the economic developments followed by the Chinese economy, the world's largest metal consumer, amid a lack of economic data earlier this week. In conjunction with the partial closure of the federal government in its fourth week.
Gold futures for February delivery rose 0.14% to currently trade at $ 1,291.30 per ounce compared to the opening at $ 1,289.50 per ounce, while the US dollar index fell 0.07% to 95.60 compared to the opening at 95.67 .
We followed the Chinese economy reading the trade balance index, which showed a surplus of 395 billion yuan, or 57.1 billion yuan, compared to 306 billion yuan, or 44.7 billion dollars in November, Forecasts that the surplus would widen to 345 billion yuan ($ 51.6 billion) as imports fell more than last month.
US Treasury Secretary Stephen Minuchin said on Friday that the Chinese vice premier is expected to complete the US-China trade talks in Washington by the end of this month, saying that the upcoming talks in his country will take into account Extension of tariff schedule.
This follows China's Ministry of Commerce that Beijing and Washington agreed to continue last week's trade talks between the world's top economists and that trade talks in Beijing were detailed and accurate on some outstanding issues, The British Parliament voted on the file of Britain's exit from the European Union.
Technical Analysis
Gold has returned to test the 1286.70 level and maintains stability above it, keeping the bullish scenario intact so far, supported by the SMA 50 that protects the mentioned level, along with the Stochastic which gives positive signals on the 4 hour timeframe, awaiting targeting 1316.65 as a next stop .
Keep in mind that a break of 1286.70 will turn the intraday path downward to achieve negative targets of 1262.50 mainly.
The trading range for today is expected among the support at 1280.00 and resistance at 1316.00
Support and resistance:
Support: 1286.8-1262.81-1251.32
Resistance: 1301.43-1318.00
The general trend for today is bullish