Gold futures traded in a tight range slipping into the Asian session to see their second straight session retreat since May 10, 2013 as the US dollar index rose for a second straight session as the economic data was mixed with Early this week by the US economy, the world's largest economy.
Gold futures for August delivery fell 0.05% to currently trade at $ 1,427.80 per ounce compared with the opening at $ 1,428.50 per ounce. The contracts started the trading session on a bullish price gap after closing the trading session. Last week at $ 1,426.70 an ounce, amid the dollar index rose 0.03% to 97.17 compared to the opening at 97.15.
Investors are waiting for what the Governor of the Bank of Japan, Haruhiko Kuroda, will say at the International Monetary Fund in Washington, DC. Otherwise, we followed Sunday the victory of Japanese Prime Minister Shinzo Abe's ruling coalition by a majority in the Japanese upper house. Which has recently escalated between Japan and South Korea and which may continue as Abe continues to lead the country.
In another context, last Friday we followed FOMC Chairman and New York Bank Chairman John Williams to his recent remarks, saying that his latest speech was not about possible monetary policy measures at the next meeting of the Commission, which dampened market speculation that the interest rate cut On federal funds by 50 basis points by the end of this month.
In the same vein, we also followed Friday the Wall Street Journal's view that the Federal Reserve may cut interest rates at the July 30-31 meeting by only 25 basis points, and that the monetary policy makers of the Federal Commission may make further cuts in the future depending on Growing uncertainty about global growth and global trade.
Technical Analysis
Gold has rebounded after testing the $ 1450.00 barrier to move closer to the bullish trend line shown in the image, and the 50 SMA meets this support to add more strength to it, noting that Stochastic is beginning to provide a positive cross signal over the 4-hour time frame.
Therefore, these factors encourage us to tilt the bullish trend during the coming sessions, and the price needs to breach the 1450.00 level to confirm the opening of the way towards the next main target of 1500.00, keeping in mind that breaking the 1410.90 will stop the expected rise and press the price to start a bearish correction On the intraday basis.
The trading range for today is among the key support at 1415.00 and resistance at 1460.00
The general trend for today is bullish.