Gold futures traded in a tight range slipping towards the Asian session to see a rebound from the top since May 17 as the dollar index rose for the second straight session from its 16-month low on the back of recent developments. Economic growth expected Tuesday by the US economy, the largest economy in the world and coincided with the visit of US President Donald Trump to Japan.
Gold futures for August delivery fell 0.09% to currently trade at $ 1,288.00 per ounce, showing a two-week rebound from the top of $ 1.289.20 per ounce. The US dollar index gained 0.07% To 97.80 levels, showing a rebound from its 2-week low compared to the opening at 97.74.
US investors are eyeing the release of housing market data with the Home Price Index reading, which may reflect slowing growth to 0.2% versus 0.3%, and the S & P House Price Index, which may show growth accelerating to 3.1% vs. 3.0% Last February, leading to the Consumer Confidence reading, which may reflect a widening to 130.1 vs. 129.2 in April.
In addition, the markets are looking forward to the visit of US President Trump to Asia's second largest economy and the third largest economy in the world after the United States and China as part of a four-day international visit to Japan that began yesterday and at the start of a joint press conference with Japanese Prime Minister Shinzo Abe Announced his hopes of announcing a trade agreement with Japan soon, prompting investors' appetite for risk.
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 price of gold has not shown any strong movement in the last sessions, and the price is positively supported by SMA 50, while Stochastic is attempting to shed its negative momentum.
Therefore, we believe that opportunities are available for resuming the expected bullish direction over intraday basis, where next target resides at 1302.60, while achieving stability above 1275.30.
The trading range for today is among the key support at 1275.00 and resistance at 1302.60.
The general trend for today is bullish.