Gold futures fluctuated in a narrow range tilted lower during the Asian session to witness the bounce for the sixth session in nine 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 Friday By the US economy, the largest economy in the world which includes the proceedings of the economic policy seminar Jackson Hole and the upcoming talk of Fed Governor Jerome Powell.
Gold futures for December 15 delivery fell 0.32% to currently trade at $ 1494.40 an ounce compared to the opening at $ 1498.50 an ounce, amid the US dollar index rose 0.15% to 98.33 compared to the opening at 98.19.
Investors are currently awaiting the US economy to release the housing market data from the release of the New Home Sales which may reflect a decline of 0.2% to 645K versus a rise of 7.0% at 646K in June, in conjunction with the speech of the Federal Reserve Governor. Jerome Powell under the title "Challenges of Monetary Policy" during the proceedings of the Jackson Hole Symposium.
The Jackson Hole Economic Policy Symposium, attended by global central bankers and finance ministers as well as academics and financial market participants from all over the world at the Kansas City Federal Reserve, is entering its second consecutive day and will end on Saturday with the third day.
This came hours after the release of the minutes of the FOMC meeting held on July 30-31 and was then approved by the Federal Reserve for the first time in more than a decade by 25 basis points. 2.00% and 2.25%, which was in line with expectations, with the statement 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 was unable to hold above 1503.24, trading negatively and heading towards a potential test of 1483.60, affected by the negative pressure of SMA 50.
Therefore, the bearish bias is likely for today, noting that the expected decline is temporary unless breaking the 1483.60 level and then extending the downside corrective wave to reach 1467.75 as the next negative stop, taking into consideration that breaching 1503.24 and holding above it will stop the suggested negative scenario and push the price. To resume the main bullish trend again.
Expected trading range for today is between 1483.60 support and 1510.00 resistance.
Expected trend for today: Temporarily bearish.