Gold futures traded in a tight range slipping during the Asian session to see their 11-day rally rebound in 16 sessions from its highest since May 14, 2013, shedding the USD index for the first time in three sessions according to the inverse 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 fell 0.09% to currently trade at $ 1,406.70 per ounce compared to the opening at $ 1,407.90 an ounce. The contracts started trading on a bearish price gap after closing Yesterday at $ 1,411.20 an ounce, while the dollar index rose 0.03% to 97.34 compared to the opening at 97.37.
Investors are currently waiting for the US economy to release data on the housing market with the Housing Starts and Construction Permits reading for June, expected to see building permits slow to 0.1% for 1,300K versus 0.3% at 1,294K. May, while the start-up homes may show a decline to 0.7% for 1,260,000 homes versus 0.9% at 1,269,000.
This comes before we see the disclosure of the book report Beige, which is important in being issued two weeks before the meeting of the Federal Open Market Committee, which is one of the pillars on which the monetary policy makers of the Federal Reserve decisions and directions to support and stimulate the US economy, knowing that the next meeting The next federal commission will be held on 30-31 of July.
Otherwise, we have followed Tuesday the US president said that the road is still long before talking about the possibility of reaching a trade agreement with China, with both the European Union and China are pumping money into their financial system, and his testimony that his administration can impose customs duties on imports America from China if desired, adding that the cut in the federal funds rate will support the stock markets and their rise.
US Treasury Secretary Stephen Minoch noted earlier this week that a telephone conversation with Chinese officials was expected later this week as part of the resumption of trade talks between the Washington-Washington trade agreement. In another context, Chinese Premier Li Kiping said that the risks The decline is growing against China's economic growth and his country will maintain prudent monetary policy and proactive fiscal policy.
Otherwise, we also followed yesterday. Fed Governor Jerome Powell said US inflation accelerated last month to 1.7%, saying inflationary pressures were still below 2% and that the Federal Reserve was "carefully watching" And will "act as necessary to maintain the expansion," he said in testimony before Congress last week.
Technical Analysis
The price of gold has tested a fresh test of 1400.30 and remains stable above it. The bullish scenario remains valid for the coming period as the price moves within a symmetrical triangle that shows its features, awaiting a breach of 1423.00 to facilitate the move toward our first major target at 1438.90.
On the other hand, keep in mind that a break of 1400.30 will press the price to make further bearish correction and visit 1376.30 areas in the near term.
The trading range for today is among the support at 1395.00 and resistance at 1425.00
The general trend for today is bullish.