Gold prices started to recover slightly after the last two sessions as gold prices tumbled in a narrow range inclined to rise during the Asian session, regardless of the rise of the dollar index for the fourth session in a row according to the inverse relationship between them. After the decisions and directions of the Reserve Bank of Australia and the news and economic data expected on Tuesday by the US economy.
In the Asian session, gold futures rose 0.15% to currently trade at $ 1,289.60 per ounce from the opening at $ 1.287.80 per ounce, while the US dollar index rose 0.07% to 96.71, showing a four-week low against the opening at 96.68.
We followed the release of Reserve Bank of Australia monetary policy statement with the Bank's monetary policy makers 'decision to keep interest rates at 1.50% for the 29th consecutive meeting, which was in line with analysts' expectations, and comes hours before the expected speech of the Reserve Bank of Australia Philippe Lowy on Wednesday under the title "Housing Market and Economy" at the Australian Financial Action Summit in Sydney.
From the US economy, we expect to see the final reading of the index of the Institute of Service Supply by Markit from the United States, which may reflect the stability of the wideness at 56.2 compared to 54.2 in January.
And the index of the Institute of Supply Services, which may show a breadth to 57.4 compared to 56.7 in January, and we would like to point out that the service supply is important in that the service sector in America represents more than two thirds of GDP, in conjunction with disclosure of housing market data The new home sales reading, which could reflect a decline of 8.7% to 590 thousand versus a rise of 16.9% at 657 thousand in December.
Technical Analysis
Gold reached the target near 1281.61 support to oscillate in a choppy range that tends to rise but faces resistance from the 7 MA.
Moving averages still press the price for further decline while the Stochastic is starting to exit the overbought area by the end of the current correction wave and back to the upside again.
We will continue to push the downside move for today unless 1302.06 is breached and stability above it, noting that breaking the target will push the pair towards the next correction level at 1253.20.
The trading range for today is among the support at 1275.00 and resistance at 1300.00
Support and resistance:
Support: 1281.61-1275.00
Resistance: 1294.65-1302.15
The general trend for today is bearish