Futures contracts for gold prices fluctuated in a narrow range slanting to rise during the Asian session amid the decline of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected today, Tuesday, by the US economy, the largest economy in the world, and in the shadow of market pricing for a second wave of Coronavirus outbreak globally, in particular In the west.
At exactly 05:16 a.m. GMT, gold futures contracts for next December delivery rose 0.29% to trade at $ 1,910.00 per ounce compared to the opening at $ 1,904.40 per ounce, knowing that the contracts started trading on a downward price gap after it was concluded Yesterday's trading at $ 1,905.70 an ounce, with the dollar index declining 0.12% to 92.96 compared to the opening at 93.07.
Investors are currently anticipating the US economy to reveal a reading of the durable goods orders index, which represents about half of consumer spending, which accounts for more than two-thirds of the gross domestic product in the United States, and which may reflect a stable growth rate of 0.5% during September, while it may appear The core reading of the same index slows the pace of growth to 0.3%, from 0.6% in August.
This comes before we witness the disclosure of the US housing market data with the release of the house price index reading, which may indicate a slowdown in growth to 0.7% compared to 1.0% last July, in conjunction with the release of the Standard & Poor's Composite-20 home price reading, which may appear. Growth also slowed to 0.5% from 0.6% in July, while the annual reading of the same index may reflect an acceleration of growth to 4.2%, compared to 3.9% in July.
Up to the disclosure by the largest industrial country in the world of industrial sector data, with the release of the Richmond Industrial Index reading, which may reflect a contraction of the expansion to a value of 18 compared to 21 last September, in conjunction with the disclosure of the consumer confidence index reading, which may show an expansion This increased to 102.1, compared to 101.8 in September.
Technical analysis
The price of gold did not stabilize for long below the level of 1901.80, to trade positively and test the pivotal resistance that now rises to 1910.00, and the price is making attempts to breach this level and achieve more intraday gains, which makes us prefer to stop temporarily until we get a clearer signal for the next trend, due to The conflict between technical factors faced by the price.
We point out that breaching 1910.00 will lead the price to achieve a new high, targeting testing 1934.86 areas again, while breaching 1901.80 and holding below it will re-activate the bearish trend scenario, whose next main target is at 1860.90.
The expected trading range for today is between 1890.00 support and 1930.00 resistance.
The expected trend for today: depends on the levels mentioned in the report.