Gold price futures fluctuated in a narrow range tilted toward decline during the Asian session to witness its bounce back for the eighth session in the twelve sessions from the top since March 22, 2013 amid the positive stability of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected on Thursday By the economies of the euro area and the US economy and in the shadows of the World Economic Forum Davos and the concern about the spread of the Coruna virus and its transformation into a pandemic.
At exactly 03:59 AM GMT, gold price futures for February delivery fell 0.07% to trade at $ 1,557.80 per ounce compared to the opening at $ 1,558.90 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,556.70 an ounce, with the US dollar index rising 0.07% to 97.55 compared to the opening at 97.49.
Investors looked for the eurozone economies as a whole to be the outcome of the European Central Bank meeting, during which the European monetary policy frameworks are expected to be reviewed and monetary policy makers to maintain interest rates at their current zero levels and stabilize the marginal lending rate at 0.25% in addition to maintaining a rate Interest on deposits is negative -0.50% and proceed with the quantitative easing program at 20 billion euros per month.
This comes before we witness the activities of the press conference of the European Central Bank Governor Christine Lagarde, which is the second press conference of the former Director of the International Monetary Fund after she took over the position of the European Central Governor to succeed the previous Governor Mario Draghi. It is scheduled that tomorrow, Lagarde will participate in a panel discussion entitled "Outlook" World Economic Forum "in the last days of the World Economic Forum 2020 in Davos.
On the other hand, investors are currently looking for the US economy to publish the reading of the claims requests index for the week that expires on January 18, which may reflect an increase of 10 thousand requests to 214 thousand applications compared to 204 thousand requests in the previous weekly reading, while the reading of the index may clarify Subsidy applications Investors for the week that ended on the 11th of this month decreased by 17 thousand requests to 1,750 thousand requests compared to 1,750 thousand requests.
This comes before we witnessed by the largest economy in the world and the largest industrialized world in the world, the disclosure of reading the leading indicators, which may show a 0.2% decline against stability at zero levels last November, in conjunction with entering the World Economic Forum in Davos in Switzerland today. The third in a row, in which the attendees discuss the latest developments on the world stage, both politically and economically.
It is reported that US President Donald Trump noted yesterday from Davos that the Federal Reserve is harming economic growth and stock market gains, expressing that without the interest rate hike on federal funds, the Dow Jones index would rise by an additional ten thousand points, explaining that the strength of the green currency is hurting the United States’s exports and industrial activities, And adding that the US dollar should be weakened.
In the same context, he praised in Davos last Tuesday what his administration reached in terms of trade deals and economic achievements for his country, noting the trade agreements concluded with China, Mexico and Canada, with his statement that the second stage of the trade agreement between Washington and Beijing will start soon and that Tariffs exist during the second stage talks, adding that there is a good relationship with his Chinese counterpart Xi Jinping.
On the other hand, we are currently witnessing the leading Chinese stock indices for the paths of the decline in Asian stock indices, as investors are reluctant to risk amid concerns about the outbreak of the Coronavirus and its epidemic on the threshold of the Lunar New Year holiday in China, which will begin next Saturday. Chinese authorities have suspended foreign flights The rail services from Wuhan, the city where the virus originated, were part of efforts to contain the disease.
Other than that, we followed up on Tuesday the report that touched on North Korea's threat to the United States not to disarm its nuclear weapons in the event of continued US sanctions imposed on them, as we followed then a deputy in the Iranian Parliament expressed that his country would be protected from any threats if it possessed nuclear weapons, explaining that Tehran must bear in mind the production of long-range missiles capable of carrying nuclear warheads, adding that this guaranteed the right to self-defense.
Gold price trading remains above 1554.10 level, and gets continuous positive support from the EMA50, while stochastic starts attempts to get rid of negative momentum.
Thus, we believe that opportunities are available to resume the expected bullish direction for the upcoming period, which initially targets 1575.90, noting that breaking 1554.10 will press the price to test the next 1536.50 level as a next negative target.
The expected trading range for today is between 1545.00 support and 1575.00 resistance.
Expected trend for today: bullish.