Futures contracts for gold prices fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the fourth session from its highest since November 18, overlooking the decline of the US dollar index, indicating its stability near its lowest in two and a half years according to the inverse relationship between them on the cusp of developments And the economic data expected today, Friday, by the US economy, the largest economy in the world, and in the shadows of investor pricing to impose the approval of US lawmakers for a new stimulus package to face the repercussions of the Corona pandemic.
At exactly 05:28 am GMT, gold futures contracts for next February delivery decreased 0.16% to trade at $ 1,840.10 per ounce, compared to the opening at $ 1,843.00 per ounce, knowing that the contracts started the session on a rising price gap after yesterday's trading was concluded At $ 1,838.50 per ounce, while the US dollar index fell 0.12% to 90.65 compared to an opening at 90.75.
Investors are currently awaiting the US economy for the release of the producer price index reading, which is a preliminary indicator of inflation, which may show a slowdown in growth to 0.1% compared to 0.3% last October, while the core reading of the same index may indicate that growth accelerated to 0.3% compared to 0.1%. The annual reading of the index may reflect an acceleration of growth to 0.8% compared to 0.5%, and the core annual reading shows an acceleration of growth to 1.1% against 1.5%.
Up to the disclosure of the preliminary reading of the University of Michigan Consumer Confidence Index, which may show a contraction of the breadth to a value of 76.1 compared to 76.9 last November. From the Corona pandemic worth $ 916 billion and that it was discussed with senators from the Democratic and Republican parties.
This comes in conjunction with growing market expectations that the Federal Reserve will amend its directives regarding the asset purchase plan by next week during the FOMC meeting December 15/16 this December, and in the wake of the European Central Bank yesterday increasing the volume of purchases of the emergency program to combat the epidemic By 500 billion euros to 1,850 billion euros, as part of the efforts to confront the negative repercussions of the Corona pandemic.
Technical analysis
Gold price trading is confined between pivotal levels represented by support 1833.00 and resistance 1850.00, which keeps our neutral stance valid until now, waiting for the breach of one of these levels to define the next targets more clearly.
We point out that the price consolidation above the support of the bullish intraday channel and the rally to breach the resistance 1850.00 will lead the price to resume the bullish path, whose next targets are at 1870.00 and extend to 1900.00, while breaking 1833.00 represents a negative factor that will put the price under negative pressure targeting 1820.00 then 1807.00 as initial stops.
The expected trading range for today is between 1820.00 support and 1860.00 resistance
The expected trend for today: Neutral