Gold futures traded in a tight range slipping during the Asian session, negating the negative stability of the dollar index near its highest in two years, according to the inverse relationship between them on the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world.
Gold futures for August delivery fell 0.09% to currently trade at $ 1,282.20 per ounce from the opening at $ 1,285.10 an ounce, while the US dollar index fell 0.02% to 98.12 compared to the opening at 98.13. .
Investors are currently waiting for the US economy to release the second GDP reading, which may reflect the world's largest economy expanded 3.1% in the first quarter compared to the previous preliminary reading of 3.2%, while the second reading of GDP may show stabilization of growth At 0.9%, unchanged from the previous reading.
This comes in conjunction with the reading of the index of requests for aid for the week ending May 25, which may reflect a rise of 5 thousand applications to 216 thousand applications compared to 211 thousand requests in the previous weekly reading, and the disclosure of the trade balance index of goods, which may show widening deficit To $ 72.0 billion compared to $ 71.4 billion in March.
As well as the initial reading of the Wholesale Inventories Index, which could show a 0.2% rise from March's 0.1% decline, leading to the release of housing market data with the release of Existing Home Sales, which may show growth slowing to 0.9% from 3.8% in March. March, before we see the talk of Fed Deputy Governor and Federal Open Market Committee member Richard Clarda at the New York Economic Club.
Otherwise, Beijing has warned Washington not to reduce its ability to protect its interests, according to an article in the People's Daily, the official newspaper of the ruling Communist Party of China. "We advise the US not to underestimate China's ability to protect its rights and development interests. I did not warn you! "This came hours after the Chinese press reported that Beijing may be using rare earth metals to respond to Washington.
The rare metals of the Chinese-dominated land are an important component of industry and technology as well as defense industries in the United States. These responses came from Beijing hours after US President Donald Trump said he was "not yet ready" to conclude a trade deal with his country. China, which has increased the chances of escalating the trade war between the two largest economies in the world and weighs successively on the prospects of global growth.
US President Trump noted earlier this week that China could expect to face more tariffs on its exports to the country, adding that Washington had already prepared a list of Chinese goods worth $ 300 billion, following the recent US and China Tariffs on each other's goods to 25% of 10% in the escalation of trade protection between them.
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 shows some slight bearish bias to test the main bullish trend line, but since the price is above 1275.30, our bullish outlook remains valid for the coming period as a break will press the price back to the downside correction again, Next at 1302.60.
The trading range for today is among the support at 1270.00 and resistance at 1300.00
The general trend for today is bullish.