Futures contracts for gold prices fluctuated in a narrow range that tends to rise during the Asian session, to witness its retracement of the third session from its lowest since the second of December amid the decline of the US dollar index to its lowest since April 23, 2018 according to the inverse relationship on the cusp of economic developments and data The expected Wednesday by the US economy, the largest economy in the world, which includes the proceedings of the Federal Open Market Committee meeting December 15-16 and the upcoming press conference of Federal Reserve Governor Jerome Powell.
At exactly 05:54 AM GMT, gold futures contracts for next February delivery rose 0.15% to trade at $ 1,860.50 an ounce, compared to the opening at $ 1,857.70 per ounce, knowing that the contracts started the session on a rising price gap after yesterday's trading was concluded At $ 1,855.30 per ounce, with the US dollar index declining 0.10% to 90.42 compared to the opening at 90.51.
Investors are awaiting the American economy to reveal a reading of the retail sales index, which represents about half of consumer spending, which accounts for more than two-thirds of the United States' GDP, and which may reflect a 0.3% decline compared to a 0.3% rise last October. The core reading of the same index slowed growth to 0.1%, from 0.2% in October.
This comes before we witness the unveiling of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index from the United States, which may reflect the contraction of the industrial sector in the largest industrial country in the world to 55.9 compared to 56.7 in the previous reading of last November, and the shrinking of the service sector expansion. To 55.7 compared to 58.4 in November.
Up to the disclosure of housing market data, with the release of the housing index reading by the National Association of Home Builders, which may reflect a decline to 88 from 90 in November, in conjunction with the release of the final reading of the wholesale stocks index, which may indicate slowing growth to 0.6% compared to 0.7 % Last September, and this also coincides with the activities of the Federal Open Market Committee meeting in Washington.
It is expected that monetary policy makers at the Federal Reserve Bank will keep the short-term reference interest rates at their lowest level ever, between zero and 0.25% for the sixth consecutive meeting, while revealing the expectations of the members of the Committee for growth rates, inflation and unemployment in addition to the future interest rates. For the next three years, half an hour before Fed Governor Jerome Powell's press conference.
Technical analysis
Gold price confirmed the breach of 1850.00 after closing the daily candlestick above it, to reinforce expectations for the continuation of the bullish trend effectively during the upcoming sessions, paving the way for heading towards our next positive station, which is at 1875.00, noting that breaching this level will push the price to levels of 1920.00 - 1928.60.
Consequently, the bullish trend scenario will remain likely in the intraday and short term, noting that stability above 1820.00 is important for the continuation of the expected rise.
The expected trading range for today is between 1840.00 support and 1880.00 resistance
The expected general trend for today: Bullish