Gold futures fluctuated in a narrowly bullish range during the Asian session to see their rebound to a third session in five sessions from its lowest since March 8 keeping the USD index up for the first time in three sessions. It's according to the inverse relationship between them on the eve of developments and data economic outlook on Thursday by the US economy coinciding with the effectiveness of trade talks between China, the world's largest metal consumer, and the United States in Washington.
Gold futures for June delivery rose 0.20% to currently trade at $ 1,296.10 an ounce resuming a one month low from the opening at $ 1,294.40 an ounce. The US dollar index rose 0.02% to 97.06 compared to the opening at 97.04.
Investors are currently waiting for the US economy to read the Jobless Claims for the week ending on March 30. It could reflect a rise of 4K to 211K versus 211K. 23 of the last month down by 6 thousand to 1,750 thousand applications against 1,756 thousand applications.
This comes just hours after preliminary data from the US labor market showed the pace of job creation in the private sector slowed last month exceeding expectations for 129,000 jobs in comparison to 197,000 jobs added last February. It was on the eve of the release of the monthly report of non-agricultural jobs and rates unemployment in addition to the hourly rate of income in the United States for the month of March on Friday.
In another context, the markets are currently looking forward to the upcoming meeting of Liu Ho, China's chief trade negotiator, and Donald Trump, US President, in Washington. It's a part of the latest round of US-China trade talks amid efforts by both sides to avoid a trade war between the world's biggest economists. Larry Kudlow, US President George W. Bush's chief economic adviser, expressed optimism about a trade deal yesterday.
Technical analysis:
The gold price has not shown any strong movement in the past sessions. As long as the price is below 1301.60, our bearish outlook remains valid. It's supported by the negative pressure formed by SMA 50 mainly awaiting the 1275.30 visit.
Keep in mind the breaking of the target level will extend the correctional correction to 1253.20 as the next major stop.
The trading range for today is among the support at 1270.00 and resistance at 1301.60.
The general trend for today is bearish.