Gold futures fluctuated in a narrow range slipping into the Asian session, negating the negative stability of the US dollar index, indicating a rebound to the second session of the highest since January 4, according to the inverse relationship between them on the eve of developments and economic data expected on Friday from Before the US economy and concurrently continued partial closure of the federal government in the United States.
Gold futures for February delivery fell 0.08% to currently trade at $ 1,291.30 per ounce from the opening at $ 1,292.30 per ounce, while the US dollar index fell 0.01% to 96.06 compared to the opening at 96.07. .
Investors are eyeing what Federal Open Market Committee (FOMC) Chairman and New York Federal Reserve Chairman John Williams will talk about economic outlook and monetary policy at the Economic Leadership Forum of the New Jersey Banking Corporation before we see the world's largest industrial nations unveil the Industrial Production Index Which could reflect slowing growth to 0.2% versus 0.6% in November.
In conjunction with the release of the Energy Utilization Index reading, which may show a faster growth rate of 78.6% versus 78.5% in November, leading to the release of the January consumer confidence index for January, which may reflect the contraction of the spread to the value of 97.0 versus 98.3 last December.
Technical Analysis
Gold is still limited within the bullish triangle pattern as gold fluctuates within this pattern in a sideways trend towards the upside and supports the SMA 7 which is moving below the support level near 1286.83 and the SMA 20 is closer to the price.
Stochastic continues to move sideways as the pair is waiting to stimulate the pair to resume the bullish trend with the next key target at 1316.65.
A break of 1295.00 will provide a strong positive catalyst that will facilitate the price action to achieve the mentioned target, while breaching 1286.70 will halt the expected rally and press the price to turn bearish.
The trading range for today is expected among the support at 1280.00 and resistance at 1316.00
Support and resistance:
Support: 1286.82-126282-1251.30
Resistance: 1295.5-1301.00-1318.00
The general trend for today is bullish