Gold futures traded in a narrow range slipping towards the Asian session to stabilize near its lowest level in four months amid the rise of the dollar index, adding stability near the top in twenty-two months according to the inverse relationship between them on the eve of economic data expected on Wednesday from Before the Chinese economy, the world's largest consumer of metals, amid a lack of economic data from the US economy.
Gold futures for June delivery fell 0.22% to currently trade at $ 1,271.50 per ounce from the opening at $ 1,274.40 an ounce, with the US dollar index rising 0.08% to 97.67 compared to the opening at 97.60.
Investors are now eyeing the Chinese economy, the world's second-largest economy and the second-largest industrial nation after the United States to unveil March's leading index reading, hours after the People's Bank of China (CBB) The reserve requirement for Chinese banks, explaining that the data for the first quarter support doing so and will re-evaluate the economic conditions.
On the other hand, experts at Standard Chartered Bank expect gold prices to rise again to last year's highs of $ 1,365 an ounce, as prices nearing the peak and falling to its lowest level this year, amid speculation that one of the main assumptions The price recovery may support the Fed's adherence to the patience policy and the suspension of monetary tightening plans and interest rates.
According to experts, the default is based on the Federal Reserve's readiness for a possible recession by 2021, which could support the performance of safe-haven gold, as they point to a surge in global central bank purchases and recent high demand for gold by China and India, By the price cycle, accordingly they expect prices to rise to $ 1,365 an ounce and that the average price next year is $ 1,375 an ounce.
Technical analysis:
The price of gold offers more negative trading below the 1275.30 level, bolstering expectations that the bearishness will continue over the short and medium term, influenced by the previously completed triangular triangle pattern, which supports the chances of heading towards the next corrective targets of 1253.20 and 1231.10.
SMA 50 continues to support the suggested bearish wave, which requires stability to remain below 1275.30 and 1282.00.
The trading range for today is among the support at 1253.20 and resistance at 1282.00
The general trend for today is bearish