Gold analysis 26.12.2019

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness the highest since November 5, disregarding the US dollar index rebound to the second session from the lowest since the beginning of July, according to the reverse relationship between them on the threshold of the Governor of the Bank of Japan Haruhiko Kuroda in Tokyo and the expected economic developments and data today by the Japanese economy and its American counterpart.

At exactly 04:12 AM GMT, gold price futures for February delivery rose 0.27% to trade at $ 1,507.90 per ounce compared to the opening at $ 1,503.90 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded Tuesday's trading At $ 1,504.80 an ounce, while the US dollar index rose 0.01% to 97.64 compared to the opening at 97.63.

Investors are awaiting the results of the speech of the Governor of the Bank of Japan Haruhiko Kuroda at the Japanese Businessmen Union meeting in Tokyo. The markets are also looking to the Japanese economy, the second largest economy in Asia and the third largest economy in the world, to disclose housing market data with the release of the annual reading of the index of the beginning of construction, which It may reflect the breadth of the decline to 7.9% compared to 7.4% in the previous annual reading for October.

On the other hand, investors are currently awaiting by the US economy, the largest economy in the world, the release of the index of subsidy requests for the week that expires on December 21, which may reflect a decline of 12 thousand requests to 222 thousand applications compared to 234 thousand requests in the previous weekly reading, This comes amid the aspiration of the US Treasury to reveal its semi-annual report on economic policies and the international exchange rate.

Technical analysis

Gold price achieved a clear breach of 1489.00 level and settled above it, which stops the bearish corrective scenario and leads the price to return to the main bullish track again, on the way to achieve gains of up to 1556.70 in the short term.

Thus, the bullish trend will be favorable for today, supported by the move above SMA 50, indicating that the expected rise depends on stability above 1489.00 level.

The expected trading range for today is between 1490.00 support and 1520.00 resistance.

Expected trend for today: bullish.