Gold futures rallied during the Asian session to see its highest since June 25, when it tested its highest since May 14, 2013 amid a decline in the dollar index for the second straight session from its highest since June 20 According to the opposite relationship between them on the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world.
Gold futures for August delivery rose 0.26% to currently trade at $ 1,428.40 per ounce compared to the opening at $ 1,424.70 an ounce. The contracts opened today at a bullish price gap after closing Yesterday at $ 1,408.00 an ounce, amid the dollar index fell 0.03% to 96.70 compared to the opening at 96.73.
Investors are currently waiting for the US economy to release preliminary data for the labor market with the reading of the Change in Private Sector Index, which may reflect the acceleration of job creation to 140,000 added jobs versus 27,000 jobs added in May, hours before the disclosure On Friday for the monthly report of non-agricultural jobs and unemployment rates in addition to the average income per hour for the last month.
This comes ahead of the June 29 reading of the Jobless Claims Index, which may reflect a drop of 7K to 220K. The ongoing Jobless Claims Index for the week ending 22 May may also show a decline of 7K To 1,681 thousand, with the release of the trade balance, which may reflect a widening deficit to $ 53.2 billion versus $ 50.8 billion in April.
Leading to the final reading of the index of the Institute of Supply Services by Markit for America, which may reflect the stability of the expansion at 50.7, not significantly changed from the initial reading and compared to 50.9 in May, before the disclosure of the index of the Institute of Supply Service, which may show a contraction of breadth to 56.1 compared to 56.9 in May, in conjunction with a factory demand reading, which may indicate a contraction of the decline to 0.4% versus 0.8% in April.
Otherwise, at the weekend, we followed the report of the US administration's proposal to impose US $ 4 billion in import duties on the United States. In the same vein, US Trade Representative Robert Leahyzer said that Washington wanted to punish Brussels for granting it In support of European aircraft maker Airbus, which gives it a competitive edge at the expense of Boeing.
Which has worried investors from turning US trade protectionism under the administration of US President Donald Trump to the European Union in the wake of Trump reached with his Chinese President Shi Jinping during the summit of the G20 summit in Japan last weekend to agree not to impose new tariffs On each other's goods and work to support the resumption of trade talks between Washington and Beijing.
Technical Analysis
The price of gold rallied sharply yesterday evening to achieve the positive target mentioned in our latest technical update at 1439.00, to return to the main ascending again, noting that the breach of the mentioned level will extend the upside wave to target areas of 1500.00 in the coming period.
Therefore, the bullish trend will be likely for the next period unless the level of 1400.00 is broken and stability below it, as breaking it will return the price to the downside correction.
The trading range for today is expected among the support at 1410.00 and resistance at 1440.00.
The general trend for today is bullish.