Gold futures fluctuated in a narrow range, tilted lower during the Asian session to witness the resumption of rebounding from the highest since April 12, 2013 for the second session in four sessions amid the rise of the US dollar index according to the inverse relationship between them on the eve of developments and economic data expected today Friday of the US economy the largest economy in the world.
At 04:08 am GMT, gold futures for December 15 fell 0.50% to trade at $ 1,514.90 an ounce compared to the opening at $ 1,521.90 an ounce, amid the US dollar index rose 0.07% to 98.20 compared to the opening at 98.13.
Investors in the US economy are awaiting the release of the housing market data with the release of the Housing Starts and Building Permits for July. Building permits are expected to rise 3.1% to 1.27 million versus a decline of 6.1% at 1.23 million in June. June starts may show a rise of 0.2% to 1.26 million versus a decline of 0.9% at 1.25 million.
This comes ahead of the preliminary reading of the University of Michigan's consumer confidence index, which may reflect a contraction to 97.2 from 98.4 in July. Otherwise, US President Donald Trump yesterday continued his criticism of the Federal Reserve for interest on federal funds, saying it was delayed. In reducing them to support the American economy, adding that imposing tariffs on China did not harm the economy, but made billions of dollars for his country.
Yesterday, a Chinese Foreign Ministry spokesman said Beijing hoped that the United States would "meet with China halfway" on trade issues, following Beijing's recent US tariffs "seriously violating" the meeting. The latest between Chinese President Xi Jinping and his US counterpart Trump, Trump also noted yesterday that any agreement must be "on our terms."
It is noteworthy that the US Treasury announced last Tuesday to postpone the date of activating the imposition of customs tariffs 10% on US imports of some Chinese goods until December 15, which was supposed to come into force by early next month, and commented US President Trump at the time The decision to postpone that it aims to support shopping in the holiday season, while expressing that the contacts with the Chinese side has been constructive recently
Technical Analysis
The price of gold continues to fluctuate around the 1525.00 level, and needs to get enough positive momentum to push the trades to continue the bullish main direction, where the positive scenario is still active with the support of SMA 50, noting that breaching 1535.00 will facilitate the task of heading towards our main target at 1560.00.
Stability above 1483.60 is important for the continuation of the suggested rally, as a breach will press the price for a further bearish correction targeting 1452.00 areas and may extend to 1432.25 before any new attempt to rise.
Expected trading range for today is between 1505.00 support and 1540.00 resistance.
Expected trend for today: Bullish.