Gold futures fluctuated in a narrow range tilted lower during the Asian session to witness its fifth session rebound in seven sessions from the highest since April 12, 2013 amid the US dollar index rose according to the inverse relationship between them on the eve of developments and economic data expected on Wednesday By the American economy the largest economy in the world.
Gold futures for December 15 delivery fell 0.64% to trade at $ 1497.30 an ounce compared with the opening at $ 1506.57 an ounce, while the US dollar index rose 0.04% to 98.21 compared to the opening at 98.17.
Investors in the US economy are awaiting the release of the housing market data with the release of the Existing Home Sales which may show a 2.5% rise to 5.41 million homes versus a 1.7% decline at 5.27 million homes in June. The minutes of the FOMC meeting were held at 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 tomorrow, we look forward to the launch of the Jackson Hole Economic Policy Symposium at the Kansas City Federal Reserve, which will be attended by global central bankers and finance ministers as well as academics and financial market participants from around the world. Jerome Powell under the title "Monetary Policy Challenges" during the seminar.
Otherwise, we followed the weekend US Commerce Secretary Wilbur Ross said that his country would postpone a 90-day ban on Huawei and a number of other Chinese companies to move forward in trade talks, while expressing concern about the Fed's approach and its impact on the strength of the Fed. The dollar, he said, is likely to recession later, but noted that the yield curve for US bonds is not an unrealistic indicator as some believe.
President Donald Trump also said on Monday that the US economy remains strong despite the vision of the Federal Reserve and its governor, Jerome Powell, and expressed the importance of cutting interest rates on federal funds at least 100 basis points while reactivating policies. Quantitative easing, explaining that America's economy will do better as interest rates decline and the global economy will benefit from it.
Technical Analysis
Gold finished yesterday's trading above 1503.24, activating the main bullish scenario again, noting that the price starts today with a bearish bias to test the mentioned level, while SMA 50 is a good intraday support against the price.
From here, we believe that opportunities are available for positive trading during the upcoming sessions, with the expected targets starting at 1535.00 then 1560.00, noting that a break of 1503.24 will put pressure on the price to test 1483.60 before any new attempt to rise.
Expected trading range for today is between 1490.00 support and 1520.00 resistance.
Expected trend for today: Bullish.