Gold futures rallied during the Asian session, their highest since July 3, when it tested its highest since May 14, 2013 amid the rebound of the dollar index for the third session of its highest since June 19 according to the reverse relationship On the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world, which includes the second half of the Fed's semi-annual testimony of the Federal Reserve Graum Powell to Congress.
At 03:58 am GMT Gold futures for delivery August 15 0.37% currently trading at $ 1,426.40 per ounce compared with the opening at $ 1,421.10 an ounce, knowing that the contracts started trading session on the gap in the price of rising after the close of trades Yesterday at $ 1,412.50 per ounce, amid the decline of the US dollar index of 0.20% to 96.87 compared to the opening at 97.06.
The markets are currently looking for the US economy to release inflation data with the release of the Consumer Price Index (CPI), which may reflect stability at zero versus 0.1% growth in May, while the core reading of the same index may show growth accelerating to 0.2% vs. 0.1%. While the annual reading of the index may show a slowdown in growth to 1.6% from 1.8%, the annualized reading may reflect the stability of growth at 2.0%.
This comes in conjunction with the publication of the requests for aid for the week ending on the sixth of this month, which may reflect a decline of 1 thousand applications to 220 thousand, and may indicate requests for continuing assistance for the week ending on June 29 decrease by 4 thousand applications to 1,682 thousand, To the second half of Federal Reserve Governor Jerome Powell's semi-annual testimony on monetary policy before the Senate Banking Committee.
We would like to point out that Powell made his first half-yearly testimony to Congress on monetary policy before the House Financial Services Committee on Wednesday, before the minutes of the Federal Open Market Committee meeting held on June 18-19, During which monetary policy makers at the Federal Reserve raised interest rates between 2.25% and 2.50% for the fourth consecutive meeting
Technical Analysis
Gold is trading around 1425.00 after yesterday's bullish rally, as the pair stopped the bearish correction and returned to the upside again, near the pre-recorded high of 1438.90.
The moving average 50 supports the price from the bottom and the price within the ascending channel is resuming. Therefore, these factors encourage us to maintain the bullish bias in the coming sessions, noting that breaching the above mentioned level will push the price to 1500.00 as the next major station, Will stop the suggested rally and press the price to return to the corrective downward 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.