Gold futures rallied during the Asian session, marking the sixth weekly gain, the longest weekly gain in three years and the second consecutive monthly gain, keeping the USD index for a third session in four sessions since its March 20 low, according to the inverse relationship between them. On the eve of developments and economic data expected Friday by the US economy, the largest economy in the world in conjunction with the launch of the G20 summit in Osaka, Japan.
Gold futures for August delivery rose 0.70% to currently trade at $ 1,423.20 per ounce compared to the opening at $ 1.413.30 an ounce. The contracts opened today with a bullish price gap after closing At $ 1,412.00 an ounce, defying the dollar's rise of 0.03% to 96.22, showing a three-month low from the opening at 96.19.
Investors are currently looking for the US economy to reveal their spending and personal income data, which may reflect the acceleration of personal spending growth to 0.5% from 0.3% in April, and personal income growth slowing to 0.3% from 0.5% in April. The Core Personal Consumption Expenditures Index stabilized at 0.2% in May, unchanged from April.
This comes ahead of the Chicago PMI reading, which may reflect a narrowing to 54.0 versus 54.2 last May and before the final reading of the University of Michigan Consumer Confidence Index, which may reflect a contraction of 97.4 as compared to the initial reading For June at 97.9 and against 100.0 in May.
In addition, investors are looking to the G20 summit in Japan and look forward to the upcoming meeting between US President Donald Trump and his Chinese counterpart Xi Jinping on the sidelines of the summit, following remarks by US Vice President of Asia Charles Freeman at the US Chamber of Commerce - that any possible new tariff on the remaining Chinese imports "does not necessarily mean" full fees 25%.
US Treasury Secretary Stephen Manuchen said Wednesday he believed there was a "way" for the United States and China to complete a trade deal, adding that 90 percent of the trade deal with China had been completed amidst his On his hopes to reach a trade agreement with China as soon as possible, adding that it is not possible to determine the date of approval of the trade agreement with China.
President Trump noted earlier that China could 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, From Washington and Beijing last month to raise tariffs on each other's goods to 25% of 10% in an escalation of trade protection among them.
On Tuesday, Fed Governor Jerome Powell said that broad market expectations of a federal interest rate cut at the next FOMC meeting were not necessarily achieved, limiting opportunities for short-term interest rate cuts by Bank of England Federal Reserve at the next meeting in July.
Technical Analysis
The price of gold opened today with a strong rally to break through 1411.00 and 1420.00 and the last four hours closing above it, pushing the pair back to the upside and stopping the suggested bearish correction in our recent reports on its way to visit the recent high of 1438.90 as the next major station.
Therefore, the bullish trend will be likely in the coming sessions unless the level of 1400.00 is broken and stability below it.
The trading range for today is expected among the support at 1400.00 and the resistance at 1440.00
The general trend for today is bullish