Gold futures fluctuated in a narrowly bullish range to see their rebound to its second-lowest session since December 27 as the US dollar index declined, showing a rebound for the second high session since January 3 according to the inverse relationship between them after declining US House of Representatives Speaker Nancy Pelosi has asked US President Donald Trump to deliver a State of the Union address to Congress on September 29 amid the partial closure of the federal government.
Gold futures for February delivery rose 0.12% to currently trade at $ 1,287.50 per ounce from the opening price of $ 1,285.90 per ounce, while the US dollar index fell 0.23% to 96.38 compared to the opening at 96.60.
On Thursday, White House Economic Adviser Lawrence Kudlow said US President Trump was optimistic about the ongoing trade talks between the United States and China, while US Commerce Secretary Wilbur Ross noted that the world's biggest economy "miles away" from resolving trade issues , But there is a fair chance that they may reach a deal.
This comes as investors look forward to the launch of the second round of trade negotiations between Washington and Beijing on January 30-31 with Chinese Vice Premier Liu Ho's visit to America later next week, with a meeting of the Federal Open Market Committee on 29 January. - 30 this month and the third vote of the British Parliament on the agreement to leave Britain from the European Union next Tuesday.
Technical Analysis
Gold continues to fluctuate between 1277.00 and resistance at 1286.70 and is under continuous negative pressure coming from SMA 50, waiting for the pair to stimulate the pair to break the mentioned support and get a negative incentive confirming the resumption of the expected bearish trend over intraday basis, which has the next target at 1262.50.
The stochastic gives a bullish signal as it moves towards the overbought area and if it is possible it is possible to see an attempt to test the resistance level 1286.83
Keep in mind that a break of 1286.70 will halt the expected decline and lead the price to gain as high as 1316.65.
The trading range for today is among the support at 1260.00 and resistance at 1290.00
Support and Resistance:
Support: 1277.0-1266.47-1251.2
Implications: 1286.83-1295.50-1300.00
The general trend for today is bearish