Gold futures traded in a tight range slipping during the Asian session to see their 10-session rally back in 15 sessions from its highest since May 14, 2013 as the US dollar index rose on the back of the economic calendar Tuesday by the US economy, the largest economy in the world, including the talk of Federal Reserve Governor Jerome Powell and many members of the Federal Open Market Committee.
Gold futures for August delivery fell 0.08% to currently trade at $ 1,415.30 per ounce compared to the opening at $ 1,416.40 an ounce. The contracts started the trading session on a bullish price gap after closing the trading session. Yesterday at $ 1.413.50 per ounce, amid the dollar index rose 0.01% to 96.93 compared to the opening at 96.92.
Investors are looking forward to Federal Reserve Vice Governor and Federal Open Market Committee member Michelle Bowman's opening remarks at the Federal Fed hearing in Atlanta before we see a reading of the import price index, which could reflect a 0.7% drop from 0.3%. May, and the index's annual reading may also show a widening of the decline to 2.1% versus 1.5%.
This comes in conjunction with the disclosure by the US economy of reading retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect slower growth to 0.1% versus 0.5% in May, as may appear reading Core for the same index slowed growth to 0.1% versus 0.5% in May.
Also, the world's largest industrial producer may see the Industrial Production Index reading, which may show a slowdown in growth to 0.1% from 0.4% in May, while the Energy Efficiency Index may show growth accelerating to 78.2% from 78.1% in May, Before we see the release of housing market data with the housing index reading released by the National Association of Home Builders, which may reflect stability at a value of 64 in June.
This comes in conjunction with the reading of wholesale stocks, which may indicate slowing growth to 0.4% versus 0.5% in April, leading to Federal Reserve Governor Jerome Powell delivering a speech entitled "Monetary Policy Aspects in the Post-Crisis Era" at the G7 Presidency French President of the Reserve Bank of Chicago and member of the Federal Committee Charles Evans in an interview with CNN-PBC.
Market speculation that Federal Reserve monetary policy makers will cut federal funds at the July 30-31 Federal Commission meeting widened last week after Federal Reserve Governor Paul delivered his biannual testimony to Congress. Following the disclosure, On the minutes of the Fed's latest meeting, which in turn supported cuts in interest rates by 25 basis points later.
Technical Analysis
The price of gold has been trading sideways since yesterday and is moving near the SMA 50 which continues to support the price from the bottom, noting that the price is confined within a symmetrical triangle shown in the image, which means that the breach of 1424.00 will provide a positive positive momentum supporting the continuation of the main bullish trend.
Therefore, we believe that opportunities are available to continue the bullish trend during the coming sessions, targeting 1438.90 as the next major station, noting that stability above 1400.30 is important for the continuation of the suggested positive scenario.
The trading range for today is expected among the support at 1400.00 and resistance at 1430.00.
The general trend for today is bullish.