Futures contracts for gold prices fluctuated in a narrow range that tends to rise, to witness its rebound to the third session in five sessions from its lowest since July 22, overlooking the bounce of the US dollar index for the third session in five sessions from its lowest since early September, when the lowest was tested Since late April 2018, according to the inverse relationship between them on the cusp of economic developments and data expected today, Friday, by the US economy, the largest economy in the world.
At exactly 05:29 am GMT, gold futures contracts for next December delivery rose 0.01% to trade at $ 1,875.80 an ounce, compared to the opening at $ 1,875.60 an ounce, knowing that the contracts started the session on a rising price gap after trading concluded Yesterday at $ 1,873.30 per ounce, while the US Dollar Index rose 0.07% to 93.00 compared to the opening at 92.94.
Investors are currently awaiting the US economy, the release of the producer price index reading, which is a preliminary indicator of inflation, which may reflect a slowdown in growth to 0.2% compared to 0.4% last September, and the core reading of the same index may also indicate a slowdown in growth to 0.2% compared to 0.4%. While the annual reading of the index may show that growth has stabilized at 0.4%, the core annual reading also reflects the stability of growth to 1.2%.
This comes, before we witness the disclosure of the preliminary reading of the University of Michigan Consumer Confidence Index, which may show an expansion to a value of 82.1 compared to 81.8 last October. Otherwise, we followed up yesterday, Fed Governor Jerome Powell expressed that his country's economy is recovering. In a way that exceeded expectations, despite the slow pace of recovery, adding that the economy is on a steady pace of improvement.
In the same context, Powell touched yesterday on the fact that the most prominent danger facing the US economy is the outbreak of the Corona virus, explaining that the danger facing the possibility of recovery lies in the continuous increase in the number of people infected with the Coronavirus, adding that the Corona vaccine is a good thing for the economy in the medium term, with His assertion that it is too early to talk now about the impact of the vaccine on economic conditions and that the next few months will be crucial months.
Technical analysis
Gold price trading is stabilizing around 1880.00, and we need to get enough positive momentum to push the price to achieve more upside in the upcoming sessions, as the bullish trend scenario remains intact over the intraday basis, supported by the formation of a bullish bottom shown in the image.
Therefore, we await the direction towards levels of 1901.80 then 1934.86, which represents our next main targets, bearing in mind that a break of 1860.90 will stop the expected rise and pressure the price to head towards 1794.84 as the next negative station.
The expected trading range for today is between 1855.00 support and 1900.00 resistance
The expected general trend for today: Bullish