Gold futures traded in a narrowly bullish range during the Asian session amid a drop in the US dollar index on the back of developments and economic data expected Tuesday by the US economy, the world's largest economy, British agreement on Britain's exit from the European Union later in the day.
Gold futures for February delivery rose 0.08% to currently trade at $ 1,292.30 per ounce compared to the opening at $ 1,291.30 per ounce, amid the decline of the US dollar index to 0.11% to 95.50 compared to the opening at 95.61 .
Investors are looking for the US economy to release the Producer Price Index (PPI), a preliminary indicator of inflationary pressures, which could reflect a 0.1% contraction versus 0.1% growth in November, while the annual reading of the same index may show growth at 2.5% As in the previous annual reading for the month of November.
In the same context, the core reading of the PPI may show a slowdown in growth to 0.2% from 0.3% in November, while the core annualized reading of the same index may show a 2.9% growth rate, compared with 2.7% in the previous November reading , In conjunction with the release of the New York Industrial Index, which may show a widening to 11.6 versus 10.9 last December.
Technical Analysis
The recent price of gold is limited to a bullish triangle pattern shown in the picture. Therefore, the price needs to break through 1296.00 for a positive incentive that strengthens the chances of heading towards our main target at 1316.65.
Therefore, we will maintain our positive outlook for the coming period provided that the price remains stable above 1286.70.
The trading range for today is expected among the support at 1280.00 and resistance at 1316.00
Support and resistance:
Support: 1286.8-1280.75-1266.47
Resistance: 1301.5-1318.00-1350.2
The general trend for today is bullish