Gold futures fluctuated in a narrow range, tilted lower during the Asian session to witness the bounce for the fifth session in six sessions from the highest since April 11, 2013, ignoring the rebound of the US dollar index for the second session from the highest since May 15 In 2017, according to the inverse relationship between them amid the scarcity of economic data at the weekend and this month by the US economy because of the Labor Day holiday on Monday there and in the wake of the developments of trade disputes between Washington and Beijing.
At 04:09 am GMT, gold futures for December delivery fell 0.03% to trade at $ 1523.40 an ounce compared to the opening at $ 1529.42 an ounce, knowing that the contracts started the session on a bullish gap after the close of trading Last week and month at $ 1,529.40 an ounce, while the dollar index fell 0.01% to 98.82 compared to the opening at 98.83.
In early September, we followed the entry into force of the new US tariffs on Chinese goods worth $ 112 billion, including shoes, smart watches and flat-screen TVs. China also began imposing retaliatory tariffs on US goods and commodities on Sunday. $ 75 billion in escalation of the trade war between Washington and Beijing, and it also coincided with escalating tensions in Hong Kong.
President Donald Trump on Sunday noted that trade negotiations between China and China are still planned for September, and that by the middle of this month new US tariffs of 15 percent on Chinese goods and commodities are also expected to be imposed. $ 160 billion, including laptops and mobile phones, on September 15.
Meanwhile, the State Council also noted yesterday that it will increase economic policy adjustments, hours after the readings of two manufacturing and service PMIs by the China Federation of Logistics and Purchasing (CFLP) last Saturday showed the manufacturing sector contracted for the fourth consecutive month and the service sector expanded significantly. It exceeded expectations last August.
By the end of this week, the week looks forward to the release of the US labor market data, before we see the upcoming speech of Fed Governor Jerome Powell and a speech entitled "Economic Outlook and Monetary Policy" at the event hosted by the Swiss Institute for International Studies in Switzerland. Zurich.
Technical Analysis
The price of gold has maintained its consolidation above 1517.25, and offers positive trades in an attempt to regain the main bullish trend, supported by the positive stochastic, to keep the overall positive scenario valid for the next period, waiting for the test of 1560.00 initially.
Keep in mind that breaching 1517.25 and holding below it will put pressure on the price to incur further losses targeting 1508.30 levels and may extend to 1493.80 before any new attempt to rise.
Expected trading range for today is between 1517.00 support and 1545.00 resistance.
Expected trend for today: Bullish.