Gold futures traded in a narrowly bullish range during the Asian session to see their rebound to a third session in five sessions from its lowest since May 2 as the US dollar index fell for the third consecutive session from its highest since May 16 from In 2017 according to the inverse relationship between them, with the absence of the US market on Monday because of the Memorial Day holiday in the United States.
Gold futures for August delivery rose 0.17% to currently trade at $ 1,291.90 per ounce compared to the opening at $ 1,289.20 an ounce, amid the decline of the US dollar index 0.01% to 97.56 compared to the opening at 97.57.
Investors are eyeing the development of trade disputes between the United States and China, the world's two largest economies, as US President Donald Trump visits Japan's third-largest economy following recent statements that Tokyo had "a great advantage" over Washington for many years. "And touched on the fact that the two sides" get closer "to a deal to deal with the trade deficit of his country.
The US trade representative recently noted that the US trade deficit reached $ 56.8 billion last year with Japan. The 45th US president's visit to Japan comes amid a threat by the US administration to introduce tariffs against Japanese and European automakers. Is now closely following the preliminary results of the European Parliament elections and their follow-up to the European Union.
On the other hand, we followed the Russian Ministry of Finance announced last week 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, The ministry said that production during the first quarter last included 45.95 metric tons of gold extracted from mines compared to about 39.78 in the first quarter of the previous year.
Technical Analysis
The major currencies and commodities are showing weak and tight trading, affected by the holiday of the financial markets of most banks, which keeps the suggested scenarios in our recent reports unchanged. We recommend reviewing our previous reports to identify pivotal levels and expected targets for the coming period.