Futures contracts for gold prices fluctuated in a narrow range that tends to rise during the Asian session, to witness the highest since the tenth of February, overlooking the resumption of the US dollar index rebound from its lowest since the 25th of the same month for the second in ...
Futures contracts for gold prices fluctuated in a narrow range that tends to rise during the Asian session, to witness the highest since the tenth of February, overlooking the resumption of the US dollar index rebound from its lowest since the 25th of the same month for the second in five sessions according to the inverse relationship between them following developments and economic data That was followed by the Chinese economy, the largest consumer of minerals in the world, and on the cusp of economic developments and data expected today, Monday, by the US economy, which include the speech of members of the Federal Open Market Committee.
At exactly 04:02 a.m. GMT, gold futures contracts for next June delivery rose 0.31% to trade at $ 1,851.70 an ounce compared to the opening at $ 1,845.90 an ounce, knowing that the contracts started the session on a rising price gap after the week's trading ended. The past was at $ 1,838.10 per ounce, while the US dollar index rose 0.08% to 90.40 compared to an opening at 90.32.
We have followed the Chinese economy, the largest economy in Asia, the second largest in the world, and the largest industrialized country in the world. The National Bureau of Statistics of China revealed the annual reading of the Industrial Production Index, which showed a slowdown in the pace of growth to 9.8% compared to 14.1% in the previous annual reading for the month of March. Last, worse than forecast for a slowdown in growth to 10.0%.
This came in conjunction with the National Bureau of Statistics of China also disclosing the annual reading of the retail sales index, which showed a slowdown in the pace of growth to 17.7% compared to 34.2% in the previous annual reading for the month of March, worse than expectations that indicated a slowdown in growth to 25.0%, while the reading showed Unemployment rates fell to 5.1% from 5.3% in March, beating expectations that indicated a decline to 5.2%.
On the other hand, investors are awaiting the US economy, the second largest industrial country in the world, to unveil the industrial sector data with the release of the New York Industrial Index, which may reflect a contraction of the expansion to a value of 23.9 compared to 26.3 last April, before we witness the disclosure. On the housing market data, with the release of the housing index reading by the National Association of Home Builders, which may reflect stability at 83 in May.
In another context, the yield on 10-year US Treasury bonds decreased 0.63% to 1.620%, reflecting its retracement for the third consecutive session from its highest since April 6, after its biggest daily rise since March 18 with Wednesday's rise. Lasting 4.73%, up in five weeks back then, in the wake of the US CPI reading for April showed the biggest rise since 2009.
This comes on the heels of rising commodity prices, which raised concerns about inflation and fueled speculation that the Federal Reserve may cut stimulus early to curb inflation, despite recent assurances from members of the Federal Open Market Committee, led by Fed Governor Jerome. Powell said that the Federal Reserve will keep interest rates zero until a strong economic recovery.
Technical analysis
The price of gold opened the trading day with a strong positive, to surpass 1838.00 and reach 1850.00 now, which supports the continuation of our bullish expectations effectively, and the way is open for us to head towards our next target at 1865.00.
Consequently, we will continue suggesting the bullish trend for the upcoming period, organizing inside the ascending channel that gets good positive support from the MA 50, bearing in mind that breaking 1838.00 and holding below it will pressure the price to make a temporary bearish correction before returning to rise again.
The expected trading range for today is between 1838.00 support and 1865.00 resistance
The expected general trend for today: Bullish
