Gold Analysis 24.12.2018

Gold futures rallied during the Asian session to stabilize near the top since June 25 as the US dollar index fell on the back of the global economic data as the Japanese market was absent due to the Emperor's birthday and early closing of the stock indices Australian and New Zealand and also a short session in America before they miss Tuesday to celebrate the Christmas holiday.

Gold prices are benefiting from the diversion of liquidity from high-risk stocks to precious metals, led by safe haven gold following the closing of US stocks last week, down about two percent for a third straight session to reflect its worst weekly performance since August. August of 2011 on Wall Street.

The Bloomberg news agency reported last weekend that the US president had discussed with his advisers the demobilization of Federal Reserve Governor Jerome Powell, in addition to concern that President Trump threatened to close the US government if Congress refused to finance the construction of the border wall to be built on the tape Border with Mexico.

However, US Treasury Secretary Stephen Manuchen later tried through his official Twitter account to reassure financial markets that Fed governor Paul would not be removed from office. He said he had spoken to the 45th President of the United States, Trump, about the matter and that Trump told him he did not propose Never dismissing Powell and not believing he had the right to do so.

China's Ministry of Commerce said on Sunday that the Beijing-Washington talks at vice-ministerial level on issues such as trade balance and strengthening intellectual property protection had been held earlier in the week and that the two sides had "exchanged views" and made progress, During its official statement on its website that both parties had discussions about mutual visits to each other coming.

Technical Analysis

The price of gold opens today with a significant increase to move above 1262.51, but it remains intact with the ascending corrective channel, accompanied by the start of Stochastic positive momentum loss, which supports the downside chances to resume the bearish trend suggested in our recent reports.

Therefore, we will continue to tilt the bearish trend in the coming sessions unless the 1269.00 level is breached and stability above it, with the reminder that our main target awaited at 1238.30.

The trading range for today is among the support at 1240.00 and resistance at 1275.00

Support and resistance:

Support: 1257.00-1251.3-1238.4

Resistance: 1262.8-1275.00-1286.9

The general trend for today is bearish