Gold futures traded in a tight range slipping into the Asian session as the US dollar index rose to its highest level since April 23, when it tested its highest since May 16, 2017 according to the inverse relationship between them on the eve of developments and data Economic outlook on Thursday by the US economy, the world's largest economy.
Gold futures for June delivery fell 0.10% to currently trade at $ 1,272.20 per ounce from the opening at $ 1,273.30 per ounce, with the US dollar index rising 0.08% to 98.14 compared to the opening at 98.07. .
Investors are currently waiting for the US economy to read the Jobless Claims for the week ending May 18th, which could reflect a rise of 3K to 215K versus 212K in the previous week's reading. For the week ending on 11 of this month, up by 9 thousand applications to 1,690 thousand applications compared to 1,660 thousand applications.
This comes before we see the largest industrialized country in the world disclosure of the preliminary reading of the Industrial Purchasing and Service Index Markit for the United States for the month of May, amid expectations for the expansion of the industrial sector to 53.0 compared to 52.6 in April, and the expansion of the service sector to what 53.6 versus 53.0 in April.
To reveal the housing market data with the release of the new home sales index, which may show a decline of 2.5% to 678 thousand homes compared to a rise of 4.5% at 692 thousand homes in March, and comes hours after the disclosure of minutes of the meeting of the Federal Committee, which expressed the During which the monetary policy makers of the Federal Reserve are determined not to take any steps towards interest rates "for some time" even if the economy improves.
On the other hand, we have continued with the beginning of this week announced the Russian Ministry of Finance that the production of Russia (the third largest gold producer globally) of gold in the first three months of this year rose to 58.12 metric tons compared to 51.61 in the same period last year 2018, amid According to the ministry, production during the first quarter of the year included 45.95 metric tons of gold extracted from mines compared to 39.78 in the first quarter of the previous year.
Technical Analysis
Gold continues to fluctuate below 1275.30. The downside correction remains valid for the coming sessions, supported by the SMA 50, awaiting the resumption of the bearish trend with the next target at 1253.20, while the downside will remain intact unless 1275.30 and 1282.00 are breached and stability above it.
The trading range for today is among the support at 1255.00 and resistance at 1282.00.
The general trend for today is bearish.