Gold futures fluctuated in a narrowly sloping range during the Asian session to see their rebound to its second highest session since February 20, when it tested its highest since April 19, 2018, negating the negative stability of the US Dollar index according to the relationship 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 0.08% to currently trade at $ 1,335.10 per ounce from the opening at $ 1,336.10 per ounce, while the US dollar index fell 0.02% to 97.27 compared to the opening at 97.29. .
Investors are currently waiting for the US economy to reveal the final reading of the productivity index and the cost of one work, which may show a stable productivity growth of 3.6%, unchanged from the first quarter reading, compared with 1.9% in the previous quarter, Also slightly unchanged from preliminary reading and versus 2.0% growth in the previous quarter's reading.
This comes in conjunction with the reading of the index of claims for the week ending in early June, which may reflect the stability of 215 thousand requests, unchanged from the previous weekly reading, while may show the reading of the index of applicants for aid for the week of 25 May increase By 5 thousand applications to 1,662 thousand applications compared to 1,657 thousand applications in the previous weekly reading.
This is also in line with the release of the trade balance, which could reflect a widening deficit to $ 50.5 billion versus $ 50.0 billion in March, before we see the expected talk of FOMC member and New York Fed Chairman John Williams about the economy At the Council on Foreign Relations in New York.
This comes hours after the Beige Book report, which is important in being released two weeks before the FOMC meeting, followed by Federal Reserve Governor Jerome Powell earlier this week that the Fed would act appropriately to maintain the pace of growth The highest 2% and low unemployment rates in the US, explaining that he closely monitors the implications of trade tensions.
Technical Analysis
Gold was able to reach a few pips ahead of our main target at 1346.70. Some bearishness appears to be affected by stochastic negativity, noting that the index is shedding negative momentum and moving near oversold areas, Breaching the mentioned level to confirm the extension of the upside wave towards the 1365.25 zones as the next major station.
Therefore, the bullish trend will remain likely over intraday and short term unless the level of 1302.60 is breached and stability below it, noting that SMA 50 supports the suggested bullish wave.
The trading range for today is among the support at 1315.00 and resistance at 1350.00.
The general trend for today is bullish.