Gold futures traded in a tight range slipping during the Asian session to see their sixth straight session retreat since April 11 as the dollar index rose for the sixth session in seven sessions from its lowest since 18 of the same month according to the relationship In contrast to the Federal Reserve Governor Jerome Powell's speech in Florida and on the eve of economic developments and data expected Tuesday by the US economy, the world's largest economy.
Gold futures for June delivery fell 0.04% to currently trade at $ 1,275.30 per ounce, showing a six-week high rebound compared to the opening at $ 1,275.90 an ounce, amid the rising US dollar index 0.07% to 98.00 levels, resuming its decline from its lowest level in five weeks compared to the opening at 97.92.
Just a few days ago, Fed Governor Jerome Powell delivered a speech entitled "Risk Assessment of Our Financial System" at the Financial Markets Conference, in which he expressed the view that commercial lending was not a threat to the US economy such as high-risk mortgages a decade ago, "It seems that the financial system today is strong enough to deal with potential losses in the business sector."
In another context, markets are currently looking to release US housing data as the Existing Home Sales Index, which may reflect a rise of 2.7% to 5.35 million homes from 4.9% at 5.21 million in March, Federal Open Market Committee (FOMC) members are Chairman of the Federal Reserve Bank of Chicago Charles Evans on economics and monetary policy at the Florida Financial Markets Conference and Federal Reserve Bank President Eric Rosengren at the New York Economic Club.
On Wednesday, we expect to see the minutes of the Federal Committee meeting held at the end of April and early May, during which monetary policy makers at the Federal Reserve agreed to keep interest rates at between 2.25% and 2.50% for the third consecutive meeting Amid a move to cut back on bond buying before it is frozen by September and a policy of patience.
Technical Analysis
The price of gold was unable to breach the 1275.30 level, so that the price remains stuck between the mentioned support and the resistance 1285.00, which represents the keys to the next direction, as the price needs to break through one of these levels to determine its next targets more accurately.
We will note that breaking this support will push the pair to further downside correction and visit the 1253.20 level as the next major station, while breaching the resistance will stimulate the pair to gain gains starting at 1302.60 and then 1320.00 in the near term.
The trading range for today is among the support at 1265.00 and resistance at 1290.00.
The expected general trend today: Depends on the levels mentioned in the report.