Gold futures traded in a tight range slipping during the Asian session as the US dollar index rose on the back of the economic outlook on Friday by the world's largest economy and the outlook for developments in Washington, And Mexico on trade and immigration.
Gold futures for August delivery fell 0.18% to currently trade at $ 1,337.30 per ounce from the opening at $ 1,339.70 per ounce. The US dollar index rose 0.05% to 97.07 from the opening at 97.01. .
Investors in the US economy are eyeing labor market data, which could show a 49-year low of 3.6% in the year, unchanged from last April's reading, Average hourly earnings accelerated to 0.3% versus 0.2% in April.
This is in line with the release of the Non-Farm Employment Change Index, which may indicate a slower pace of job creation to 180,000 added jobs versus 263,000 jobs in April and before we see the final reading of the Wholesale Inventories Index, 0.7%, unchanged from April's preliminary reading and 0.1% lower than in March.
On Thursday, ECB President Mario Draghi said the ECB was ready to cut interest rates and create a new cash stimulus to buy bonds to support economic growth in the euro zone. In which uncertainty about trade disputes and their effects on the global economy.
ECB Governor Draghi said the ECB is ready to use all the tools and instruments available to it to boost economic growth and revive European exports and industry. He added that the EC has already begun to discuss details of how to respond to investor fears in European markets about inflationary pressures and economic growth In the euro area.
This comes hours after the Reserve Bank of Australia cut interest rates by 25 basis points to a new historic level of 1.25% from 1.50% to support and stimulate the Australian economy, the largest trading partner of the Chinese economy, which is engaged in a trade war with the US Department of Trade protectionism with many countries China, followed by Mexico.
Technical Analysis
The precious metal (gold) started its daily trading with a slight decline in its attempt to consolidate its positive strength, supporting the ascending trend line at the intraday basis as shown in the accompanying graph. The pair also started to support its simple moving average for 50 periods on intraday basis. The main bullish trend is in the short and medium term, and we note the start of positive signals on the RSI after reaching oversold areas.
Therefore, we expect gold to rise in the next intraday, provided that the level of support 1328.88, to target the pivotal resistance level 1344.00 in preparation for an attack.
The general trend for today is bullish.