Gold futures fell for a fourth session in five sessions from its highest since May 14, 2013 as the dollar index rose for the third session in five sessions from its lowest since March 20 according to the inverse relationship between them following developments and data Economic growth that followed the Chinese economy, the world's largest consumer of metals, on the brink of economic developments and data that followed the US economy, the world's largest economy, and hours after the events of the G-20 summit in Japan.
Gold futures for August delivery fell 0.49% to currently trade at $ 1,394.90 per ounce compared with the opening at $ 1,401.80 an ounce. The contracts started today trading on a bearish price gap after closing For the first half of this year at $ 1,413.70 an ounce, amid the dollar index rose 0.11% to 96.36, explaining that he resumed his bounce from the lowest in more than three months compared to the opening at 96.25.
We have followed the release of the China Purchasing and Logistics Managers' Index (CFLP) on the readings of the Industrial and Service Purchasing Managers Index, which reported the stability of the industrial sector at a value of 49.4, unchanged from the previous reading in May, worse than expected Contraction to 49.5, while the expansion of the service sector to 54.2 in line with expectations compared to 54.3 in May.
On the other hand, investors are currently waiting for the US economy to release the final PMI index by Markit for the United States, the world's largest industrial country, which may reflect the stability of the widening at 51.0, unchanged from the previous June preliminary reading And 50.5 in May.
Before we see the index of the Institute of Industrial Supply Institute, which may show a contraction of the breadth to 51.3 compared to 52.1 in May, as may show reading the same index measured in prices reduced the breadth to 52.9 compared to 53.2, in conjunction with the publication of the index of expenditure on Which could reflect a 0.1% rise versus stability at zero levels last April.
President Donald Trump and his Chinese counterpart, President Xi Jinping, during the G20 summit, after meeting together in Osaka, expressed their unwillingness to impose new tariffs on goods, as well as Sameh Trump of Huawei Technologies Chinese market, which stimulated risk appetite in the markets to weigh on gold prices.
Technical Analysis
Gold opened today with a strong bearish break to break the 1400.00 level and settle below it, as it completed the formation of a double top pattern showing its image features, putting the price under corrective downward pressure again on its way to visit the level 1376.30 initially.
Therefore, the downside bias will be expected for today if the price does not break above the 1400.00 level and stability above it again, noting that exceeding the target level will extend the corrective correction to 1357.00 as a next stop.
The trading range for today is among the support at 1376.00 and resistance at 1400.00.
The general trend for today is bearish.