Gold futures rallied during the Asian session, its highest since June 7, when it tested its highest since April 19, 2018, deflecting the dollar index for the fourth session in six sessions from its lowest since 26 From March, according to the inverse relationship between them on the eve of developments and economic data expected on Friday by the Chinese economy, the world's largest consumer of metals and his US counterpart, the world's largest economy.
Gold futures for August delivery rose 0.32% to currently trade at $ 1,350.80 per ounce from the opening at $ 1,346.50 per ounce, while the dollar index rose 0.05% to 97.06 compared to the opening at 97.01. .
The markets are now looking for China's National Bureau of Statistics to release its annual retail sales index, which may reflect a rapid growth to 8.0% from 7.2% in April, coinciding with the Industrial Production Index's annual reading, which could show a 5.4% growth Little changed from what it was in April, and also with the reading of unemployment rates last month.
On the other hand, investors are currently looking for the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which accounts for more than two thirds of the US gross domestic product, which may reflect a rise of 0.7% compared to a 0.2% decline in April, while may The core reading of the same index shows growth accelerating to 0.5% versus 0.1% in April.
This comes before we see the largest industrialized country in the world disclosure of industrial sector data for the month of May with the release of the index of industrial production, which may show a rise of 0.2% compared to a decline of 0.5% in April, while may show reading the index rate of exploitation Energy accelerated growth to 78.0% compared to 77.9% in April.
Leading to the release of the University of Michigan's consumer confidence index, which may reflect a widening of 98.1 versus 100 in May and consumer expectations of inflation for one year ahead and five years to come, Up 0.4% against stability at zero levels in March.
Technical Analysis
The price of gold has touched 1346.70 and attempts are underway to breach it, supporting the short-term uptrend, with our next target at 1365.25.
Therefore, we expect further upside in the coming sessions supported by SMA 50, noting that the continuation of the expected rally requires stability above 1320.30.
The trading range for today is among the support at 1335.00 and resistance at 1365.00.
The general trend for today is bullish.