Gold futures fluctuated in a narrow range, tilted lower during the Asian session to witness the bounce for the fourth session in five sessions from the highest since April 11, 2013 amid the US dollar index rose to the highest since early August, when it tested the highest Since May 15, 2017, 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.
At 04:02 AM GMT gold futures for December delivery fell 0.45% to trade at $ 1521.88 an ounce, indicating a rebound from its highest in six years compared to the opening at $ 1527.50 an ounce, amid the rise of the dollar index 0.11% To 98.54, showing its highest since the beginning of this month and stabilizing near the highest in two years compared to the opening at 98.43.
Investors are now awaiting the US economy to release spending and personal income data, which could reflect an acceleration in personal spending growth to 0.5% vs. 0.3% in June, and a slowdown in personal income growth to 0.3% vs. 0.4% in June. Core CPE reading may show accelerated growth to 0.3% versus 0.2% in June.
This comes ahead of the Chicago PMI reading, which may reflect a contraction in contraction to 48.1 from 44.4 in July, leading to the final release of the University of Michigan's consumer confidence index, which may show an expansion to 92.5 compared to the reading. The preliminary month for August was at 92.1 and against 98.4 in July.
"We firmly oppose the escalation of the trade war, and we are ready to negotiate and cooperate to resolve this crisis in a calm situation," said Chinese Ministry of Commerce spokesman Gao Feng, while addressing the fact that Chinese and US trade delegations have maintained "effective" contact. His remarks prompted markets to be optimistic about the chances of resolving the trade dispute as Beijing sought to negotiate with Washington quietly, showing more interest in the negotiations than retaliation.
Technical Analysis
The price of gold stabilized at the support of the ascending channel shown in the picture, and the 50% Fibonacci correction has formed a good support against the price, while Stochastic is showing positive signs now.
Therefore, we believe that chances are available for a rebound upwards and resuming the uptrend in the coming sessions, whose first main target is at 1560.00, noting that breaching 1522.00 then 1517.25 will stop the expected rally and pressurize the price to turn lower over intraday and short term basis.
Expected trading range for today is between 1510.00 support and 1550.00 resistance.
Expected trend for today: Bullish.