Gold prices rose during the Asian session to continue to rise for the fifth session in a row amid the decline of the dollar index, according to the inverse relationship between them. Ahead of economic data to be released from the US economy on Wednesday.
During the Asian session, gold rose 0.25% to currently trade at $ 1,305.00 per ounce from the opening at $ 1,301.80 per ounce, while the US dollar index fell 0.01% to 97.01 levels, showing a two-year rally from the top against the opening at 97.02.
Today, we expect the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which accounts for more than two thirds of the US gross domestic product, which could reflect a 0.5% drop from the 1.2% rise in December, while the core reading of the same index Growth was steady at 0.1%, unchanged from December.
Markets are also looking to release the Producer Price Index (PPI), a preliminary indicator of inflationary pressures, which may reflect a 0.2% expansion versus 0.1% contraction in January, while the annual reading of the same index may show a slower growth to 1.9% versus 2.0% Previous for January.
The core reading of the PPI shows a slowdown in growth to 0.2% from 0.3% in January, while the core annualized reading of the same index may reflect a 2.6% growth rate unchanged from the previous December reading, Before we see a reading of the construction spending index, which could reflect a rise of 0.4% versus a 0.6% decline in December.
Technical Analysis
Gold could break through the resistance level 1301.60 which was the target during this week as it managed to close and continue trading today above this level to end gold correction wave falling back to the upward trend, which has been trading since last November.
Currently, the moving averages are moving below the price to give it the strength and stability to continue the uptrend and reach the moving average 20 which seems to be moving downtrend and preparing to cross with the rest of the averages to form the ideal bullish order.
Stochastic has reached the oversold area after the breach of the resistance level. This is a strong signal that a correction may be made towards the 1301.60 level, but it is important that the price remains above the mentioned level after the stochastic exit from the overbought area until we continue on the upside.
The bullish trend will be expected for today unless the 1301.60 level is breached and stability below it again.
The trading range for today is among the support at 1295.00 and resistance at 1330.00
The general trend for today is bullish