Gold futures rallied during the Asian session, their highest since May 9, 2013, as the US dollar index fell for the third consecutive session from its highest since May 15, 2017, according to the inverse relationship between them on the eve of economic developments and data Expected on Monday by the US economy, the world's largest economy and in the shadow of market pricing for strikes and global trade tensions.
Gold futures for December delivery rose 0.93% to currently trade at $ 1,464.70 per ounce from the opening price of $ 1,451.20 an ounce. The contracts started trading on a bearish price gap after closing Last week at $ 1.457.50 per ounce, with the US dollar index falling 0.18% to 97.93 compared to the opening at 98.11.
Investors are currently waiting for the US economy to publish the final index of the Institute of Supply of Service by Markit for the United States, which may reflect the stability of the widest at 52.2, unchanged from the preliminary reading for the month of July compared to 51.5 in June, before the disclosure of the reading Of the Institute of Supply Services, which may show a breadth of 55.5 versus 55.1 in June.
In contrast, Hong Kong continues to witness widespread strikes, including a general strike paralyzed by worsening conditions, which have been strained since June when protesters took to the streets to oppose China's extradition bill, which was suspended while not fully withdrawn, Liquidity of the stock indices, especially Asia, which reflects the lowest in more than six months to safe havens, topped by gold.
Seoul announced plans to invest about 7.8 trillion won ($ 6.48 billion) in research and development to boost domestic production of materials and equipment over the next seven years to reduce its reliance on imports from Tokyo after Japan removed last week South Korea Of the "white list" and after Tokyo imposed restrictions on its exports to Seoul of high-tech materials important and important in the production of semiconductors.
On Thursday, US President Donald Trump decided to impose 10 percent tariffs on Chinese goods and goods worth $ 300 billion. The decision is supposed to go into effect by early September. Trump said last Friday he could lift tariffs on China to a "much higher figure", before noting last Saturday that things are going well, and in return pledged to face the threat of tariffs.
Technical Analysis
The price of gold has succeeded in reaching our awaited target at 1450.00 and is attempting to breach it now, thus enhancing the expectations of the bullish wave over the short term and short term, which gets positive support from SMA 50, with the next target reaching 1500.00.
Therefore, we will continue to bias the upside during the coming sessions, noting that the failure to confirm the breach of 1450.00 followed by the 1435.00 break will stop the expected rally and press the price to test the 1410.90 areas again before any new attempt to rise.
The trading range for today is among the support at 1435.00 and resistance at 1470.00
The general trend for today is bullish.