Gold futures traded in a tight range sloping upward during the Asian session to see their rebound for the third session of its lowest since June 3 amid the decline of the dollar index according to the inverse relationship between them on the eve of developments and economic data expected Thursday by the US economy larger World economy.
At 03:53 am GMT, gold futures for August delivery rose 0.05% to currently trade at $ 1,338.40 per ounce from the opening price of $ 1,337.80 per ounce. The US dollar index fell 0.01% to 96.95 from the opening at 96.96. .
Investors are currently waiting for the US economy to release a reading of the index of claims for the week ending on June 7, which may reflect a decrease of 3 thousand requests to 215 thousand requests, in conjunction with the publication of the index of import prices, which may reflect a decline of 0.3% against Up 0.3% in April, while the same year's index may show a widening of the decline to 1.4% vs. 0.2%.
Otherwise, we have followed yesterday the remarks of US Commerce Secretary Wilbur Ross, during which he noted that both President Donald Trump and his Chinese counterpart, Xi Jinping, may decide to reopen trade talks. The G20 summit scheduled for June 28-29 in Japan Will not be the place of signing the trade agreement between countries, adding that President Trump wants structural reforms in the trade agreement with China.
US Trade Secretary Ross also said the Fed should have reconsidered the recent increase in interest on federal funds that was premature, less than a week before the FOMC meeting in Washington was due to be unveiled. During which he expressed the Commission's expectations for growth rates, inflation and unemployment as well as the future interest rates for the next three years.
US President Trump said earlier this week that a trade deal with China could be reached because of tariffs and that Huawei could be part of the trade deal with China. He said economic growth Stronger for the US during the first quarter, which exceeded expectations came from tariffs.
In the same context, US President Trump warned on Monday that if his Chinese counterpart Xi Jinping did not attend the G-20 summit, he would immediately impose tariffs on Chinese goods, saying that Beijing should reach a trade deal with Washington because of its need To reach agreement, adding that China is currently exposed to complete destruction.
US President Trump noted at the time that foreign companies were working to leave China and go to other countries, including the United States. He said that the lack of a trade agreement with China would mean more tariffs, adding that tariffs are good and give America a huge competitive advantage, "We were talking about an agreement with Mexico for months and there was no agreement even to impose tariffs."
US President Trump has repeatedly noted that China can expect to face more tariffs on its exports to the country, adding that America has already prepared a list of Chinese goods worth $ 300 billion, and that this list may be subject to fees, Of Washington and Beijing last month raised tariffs on each other's goods to 25% of 10% in an escalation of trade protection among them.
Technical Analysis
Gold is around 1335.00, and the price needs to be positive enough to push the pair to continue to rise, with our first positive target at 1346.70.
In general, we continue to favor the bullishness supported by the SMA 50 provided stability above 1320.30, as a breach of this level will press the price to test the areas of 1302.60 before any new attempt to rise.
The trading range for today is among the support at 1320.00 and resistance at 1350.00.
The general trend for today is bullish.