Gold futures declined during the Asian session, to witness their rebound for the second session from their highest since October 12, when they tested their highest since September 21 amid the US dollar index rebounding to the second session from its lowest since the second of September, according to The inverse relationship between them on the cusp of developments and economic data expected today, Thursday, by the US economy, the largest economy in the world.
At exactly 05:19 a.m. GMT, gold futures contracts for December delivery fell 0.53% to trade at $ 1,916.60 an ounce compared to the opening at $ 1,927.40 per ounce, knowing that the contracts started trading on a downward price gap after it was concluded Yesterday's trading was at $ 1,929.50 an ounce, with the US dollar index rising 0.08% to 92.79 compared to the opening at 92.71.
Investors are currently awaiting the American economy to see the release of the aid requests index reading for last week on October 17th, which may reflect a decline of 38,000 requests to 860,000 requests compared to 898,000 requests in the previous weekly reading, and the aid requests reading may also appear. Continuing for the past week on the tenth of this month, a decrease by 518 thousand requests to 9.5 million requests compared to 10,018 thousand requests.
This comes before we witness the disclosure of housing market data, with the release of the Existing Home Sales Index reading, which may show an acceleration of growth to 3.3% to about 6.20 million homes compared to 2.4% at 6.00 million homes last August, coinciding with the release of the leading indicators reading. For the month of September, which may reflect slowing growth to 0.8%, compared to 1.2% in August.
Technical analysis
The price of gold continues to decline after approaching our awaited target at 1934.86, which indicates that the price is on its way to achieve more possible decline in the coming sessions, as it recorded a low top as shown in the picture, reinforced by the negativity of the stochastic indicator that supports the chances of achieving negative targets that start with testing the 1901.80 level Noting that breaking this level will push the price to visit 1880.00 then 1860.90 levels as next negative stops.
Thus, we expect to witness more decline today, bearing in mind that breaching 1934.86 will stop the negative scenario and lead the price to resume the bullish wave and achieve more gains in the short term.
The expected trading range for today is between 1890.00 support and 1930.00 resistance.
The expected general trend for today: Bearish.