Gold futures traded in a narrowly bullish range during the Asian session to see their rebound to its second-lowest session since July 17, deflecting the dollar's five-session rally in seven sessions from its lowest since July 4th according to the relationship On the eve of developments and economic data expected Friday by the US economy, the largest economy in the world.
Gold futures for December delivery rose 0.01% to currently trade at $ 1,427.60 per ounce from the opening at $ 1,427.40 per ounce, while the dollar index rose 0.02% to 97.81 compared to the opening at 97.79.
Investors are currently waiting for the US economy to disclose preliminary GDP reading for the second quarter, which could show a slowdown in the growth of the world's largest economy to 1.8%, which may show less and two-year growth compared to 3.1% in the first quarter, while may reflect The preliminary reading of GDP measured in prices over the previous quarter accelerated growth to 4.0% from 0.9% in the first quarter.
In contrast, the International Monetary Fund (IMF) on Wednesday lowered its global growth forecast for the fourth time in nine months this year and the next by 0.1% to 3.2% for 2019 and 3.5% for 2020 and renewed concern over the UK exit from the EU Former Foreign Secretary Boris Johnson, the party's leadership and British prime minister, succeeding Teresa Mae, one of the most vocal opponents of Britain's survival within the bloc.
In another context, yesterday we followed the expiration of the European Central Bank meeting, where interest rates were kept at zero levels and the marginal lending rate stabilized at 0.25% while maintaining a negative deposit rate of -0.40%. ECB Governor Mario Draghi said the European Central Bank is ready to cut interest rates to boost growth, adding that there are risks putting pressure on the economies of the euro zone.
Technical Analysis
Gold has tested the pivotal support level at 1410.90 and maintains stability above it, accompanied by the emergence of positive cross signals through stochastic, waiting for the pair to stimulate the resumption of the bullish wave during the coming sessions, with the reminder that our next main target is at 1450.00.
Therefore, we will hold onto our bullish trend for today, noting that breaking 1410.90 will stop the positive scenario and press the price to start a bearish correction with the next key target at 1385.00.
The trading range for today is among the support at 1405.00 and resistance at 1440.00
The general trend for today is bullish.