Gold futures fluctuated in a narrow upward range during the Asian session to see their stability near the highest in more than six years, ignoring the rise of the US dollar index for the third session in five sessions, the lowest since August 9, according to the inverse relationship between them On the eve of economic developments and data expected on Thursday by the US economy, the largest economy in the world.
At 03:56 AM GMT gold futures for December 15 delivery rose 0.6% to trade at $ 1545.05 an ounce compared with the opening at $ 1538.83 an ounce, while the US dollar index rose 0.02% to 98.20 compared to the opening at 98.18.
Investors are currently awaiting the US economy to reveal the second reading of GDP, which may reflect the expansion of the largest economy in the world 2.0% in the second quarter compared to the previous initial reading of 2.1% growth, while the second reading of GDP measured in prices may show stability of growth At 2.4%, little changed from the previous quarter's prior reading.
This comes in conjunction with the release of the Trade Balance of Goods, which may show the deficit narrowed to $ 74.0 billion from $ 74.2 billion last June, and the release of the preliminary reading of the inventory index, which may reflect a growth of 0.2% against the stability at zero levels in June In addition, the reading of the number of applications for the benefit last week on the 24th of this month, which may reflect an increase of 6 thousand applications to 215 thousand applications.
On the other hand, markets are looking forward to the developments of the trade war between the two largest economies in the world, which may escalate within hours by the beginning of September next, especially as the United States and China are not able to resolve trade disputes between them after the two sides announced their intention to impose new tariffs on goods. Each other earlier this month.
US President Donald Trump said earlier this week that US trade officials had received overnight calls from the Chinese that Beijing was ready to return to the negotiating table with Washington to reach a trade deal, and noted that he "has great respect for the fact that China has contacted them." "They want to make a deal," he said. "This is the first time I've seen them really want to do a deal, and I think that's a very positive step."
On the other hand, a Chinese Foreign Ministry spokesman said on Monday that he was not aware of a phone call between the two sides, but Chinese Vice Premier Liu Huo also noted Monday that "China ... firmly opposes the escalation of trade war. It benefits China, which is not good for the United States, nor does it benefit the interests of people around the world. "
This comes after we followed last Friday's report that China plans to impose 10% tariffs later this year on US goods and goods worth $ 75 billion in response to the US administration's announcement earlier this month that it would impose 10% tariffs. Chinese goods and goods worth $ 300 billion by early September and a partial postponement of the decision until mid-December.
Technical Analysis
The recent gold price trading is confined to an ascending triangular flag pattern, which means that the breach of 1545.00 will provide a good positive incentive to support the expectations for the continuation of the main bullish trend, whose next targets are at 1560.00 and extend to 1600.00.
Thereby, we will continue to favor the bullish trend, which receives positive positive support from SMA 50 unless 1530.00 is breached and stability below it.
Expected trading range for today is between 1530.00 support and 1560.00 resistance.
Expected trend for today: Bullish.