NEW YORK (Reuters) - Gold futures rallied in the Asian session near a six-year high as the US dollar index fell for a fourth straight session as the economic data from the US economy, the world's largest economy, US Federal Reserve Governor Jerome Powell and US President Donald Trump and his Chinese counterpart, Jin Jinping, are due to meet at the G20 summit in Japan.
Gold futures for August delivery rose 0.31% to currently trade at $ 1,408.20 per ounce from the opening price of $ 1,403.60 an ounce. Contracts opened this week at a bullish price gap after closing Last week's trading at $ 1,400.10 per ounce, with the dollar index falling 0.07% to 96.12, showing a three-month low against the opening at 96.18.
"It is not clear after the impact of additional monetary easing on the Australian economy," said Reserve Bank of Australia Governor Philip Lowe. "If everyone is facilitating monetary policy, the impact on exchange rates is futile," he said. The facilitation is effective globally, Central advised him that governments should consider financial spending and infrastructure to stimulate growth and inflation.
ECB President Mario Draghi noted last Tuesday that the ECB does not target specific levels of the euro exchange rate, noting that the continued ambiguity reinforces the risks and that the absence of improvement requires movement, adding that inflationary pressures are still weak and are moving at a slow pace. The European Union will take further monetary stimulus steps unless the pace of growth and inflationary pressures in the euro area improve.
Technical Analysis
Gold opened today with a strong upward trend to test last Friday's high of 1411.80 as the price tries to breach this level, waiting for a definite breach to rally towards our next positive target of 1433.60.
Stochastic and SMA 50 support the suggested bullish wave, which requires stability to remain above 1380.00.
The trading range for today is among the support at 1390.00 and resistance at 1425.00.
The general trend for today is bullish.