Gold futures fluctuated in a narrow range tilted lower during the Asian session to witness the bounce for the fifth session in eight 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 Thursday By the American economy the largest economy in the world.
At 04:09 AM GMT gold futures for December 15 delivery fell 0.07% to trade at $ 1499.20 an ounce compared with the opening at $ 1505.13 an ounce, amid the US dollar index rose 0.03% to 98.28 compared to the opening at 98.25 .
Looking ahead, the US economy is looking for a reading of the number of claims which may show a decline of 3 thousand applications to 217 thousand applications last week last Saturday, before we see the preliminary reading of the manufacturing and services PMI for the US, amid expectations of a widening The manufacturing sector expanded to 50.5 from 50.4 and the expansion of the service sector shrank to 52.9 from 53.0 in July.
Leading indicators, which may show a rise of 0.2% versus a decline of 0.3% in June, coinciding with the launch of the Jackson Hole Symposium, which is attended by global central bankers and finance ministers as well as academics and financial market participants from all over the world. Tomorrow we will see Federal Reserve Governor Jerome Powell's speech on “Monetary Policy Challenges” during the seminar.
This comes hours after the release of the minutes of the Federal Open Market Committee meeting held on July 30-31, in which it was approved to cut interest rates on federal funds for the first time in more than a decade by 25 basis points to between 2.00% And 2.25%, which was in line with expectations, with the view that the reduction came to support the pace of growth and combat the weakness of inflation in the shadows of trade protectionism.
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.