Gold futures rose during the Asian session to the highest since April 12, 2013 amid the decline of the US dollar index for the fourth session in five sessions from the highest since May 15, 2017 according to the inverse relationship between them on the eve of developments and data The economy is expected Wednesday from the US economy, the largest in the world and in the shadow of market pricing of trade tensions.
At 04:57 AM GMT gold futures for December 15 delivery rose 0.69% to trade at $ 1,497.00 an ounce compared with the opening at $ 1,486.70 an ounce, knowing that the contracts achieved the highest in more than six years at 1,502.30 $ Per ounce, with the US dollar index down 0.03% to 97.53 compared to the opening at 97.56.
Investors are now awaiting the outcome of FOMC member and Chicago Fed Chairman Charles Evans at a media Iftar hosted by the Federal Reserve Bank of Chicago, before we also see the US economy release the consumer credit reading which may reflect a drop to 16.4. $ Billion versus $ 17.1 billion last May.
Otherwise, gold prices continue to draw support as markets pricing a worsening trade war between the world's two largest economies and the yuan's exchange rate against the US dollar fell to its lowest level in more than a decade, the 7-yuan-dollar barrier that followed earlier this week. This was followed by widespread criticism by the US administration and described the matter as manipulating the exchange rate to take advantage of competitive advantages in export.
Yesterday, the People's Bank of China rejected the US Treasury Department's accusations of manipulating the yuan's exchange rate against the dollar and fighting a currency war within the US-China trade war. Reasonable under the title of "currency manipulators," a behavior that harms others and themselves.
This comes in the wake of growing trade tensions between the United States and China and expectations of growing trade tensions between them, especially in the wake of statements by the Chinese Ministry of Commerce over the weekend that Chinese companies may stop buying US agricultural products in response to US President Donald Trump's decision last Thursday to impose tariffs 10% On Chinese imports to his country worth $ 300 billion by early next month.
The Chinese Ministry of Commerce reported earlier this week that it would not "exclude" tariffs on agricultural goods purchased after August 3, and China is one of the largest importers of US agricultural products. Jang also said last Monday that his country would not use currency exchange rates as a tool in the escalating trade dispute with the United States.
Technical Analysis
The price of gold opened today with a strong rise to approach our main target at 1500.00, and we believe that the way is open to continue to make gains over the coming period, where the price gets continuous positive support from SMA 50, noting that the next stop is to test the most important resistance for medium trading Term at 1526.85.
Therefore, we await further rallies in the coming sessions provided that the price holds above 1450.00.
Expected trading range for today is between 1470.00 support and 1510.00 resistance.
The general trend for today is bullish.