Gold futures fluctuated in a narrow range tilted lower during the Asian session to witness the bounce for the fourth session in six sessions from the highest since April 12, 2013, ignoring the negative stability of the US dollar index according to the inverse relationship, amid the scarcity of economic data This weekend by the US economy the world's largest economy.
Gold futures for December 15 delivery fell 0.06% to trade at $ 1,505.00 an ounce compared to the opening at $ 1,506.30 an ounce, knowing that the contracts started the session on a falling price gap after the close of trading Yesterday at $ 1,511.60 an ounce, while the US dollar index fell 0.05% to 98.31 compared to the opening at 98.36.
Investors are looking ahead to Tuesday's speech by Federal Open Market Committee (FOMC) and Federal Reserve Vice Governor Randall Quarles on community development at the Utah Center for Settlement Districts in Salt Lake City. Held in with the end of last July.
At the July 30-31 meeting in Washington, the Fed's monetary policy makers approved the first Fed cut in more than a decade by 25 basis points to between 2.00% and 2.25%. This was in line with expectations at the time, while saying that the reduction was to support the pace of growth and to combat the weakness of inflation in the shadows of trade protectionism.
By Thursday, the markets are looking forward to the Kansas City Federal Reserve's Jackson Hole Economic Policy Symposium, which will be attended by global central bankers and finance ministers as well as academics and financial market participants from around the world. Federal Reserve Jerome Powell under the title "Monetary Policy Challenges" during the seminar.
On Monday, US Commerce Secretary Wilbur Ross said that his country would postpone a 90-day ban on Huawei and other Chinese companies to move forward with trade talks, while expressing concern about the Fed's approach and its impact on the dollar's strength. He added that an economic recession is likely to happen in the end, but noted that the US bond yield curve is an unrealistic indicator, as some believe.
President Donald Trump also said yesterday that the US economy remains strong despite the vision of the Federal Reserve and its governor, Jerome Powell, and expressed the importance of cutting the federal funds rate by at least 100 basis points while reactivating the easing policies. Quantitative, explaining that America's economy will do better with the decline in interest and that the global economy will benefit from that.
Technical Analysis
Gold has achieved a clear break of 1503.24 and stabilized below it, putting the price under negative pressure over intraday basis, and we expect to test 1483.60 before any new attempt to rise.
Therefore, the bearish bias is likely for today, noting that this decline is temporary, waiting for a rebound upwards to resume the main bullish trend again, taking into consideration that the breach of 1483.60 will force the price to make further bearish correction, whose targets extend to 1451.90, while The breach of 1503.24 represents the key to recovering the major uptrend.
Expected trading range for today is between 1480.00 support and 1505.00 resistance.
Expected trend for today: Temporarily bearish.