NEW YORK (Reuters) - Gold futures traded in a narrowly bullish range during the Asian session as the US dollar fell, showing a rebound to the second high session since June 3, according to the inverse relationship between them on the eve of economic developments and data expected Tuesday by the US economy's largest economy In the world, which includes the launch of the meeting of the Federal Open Market Committee in Washington.
Gold futures for August delivery fell 0.07% to currently trade at $ 1,344.90 per ounce from the opening at $ 1,343.90 an ounce, with the US dollar index dropping 0.08% to 97.45 compared to the opening at 97.53.
Investors are currently looking for the US economy to release housing data with the Housing Starts and Building Permits reading for May, where we expect to see about 1,290,000 building permits versus 0.6% at 1,296K in April, Initial construction may also show little stability at 1,235,000 homes, down from 5.7% in April.
This comes in line with the launch of the meeting of the Federal Open Market Committee in Washington, which is expected to keep the interest rates between 2.25% and 2.50% for the fourth meeting in a row, as markets look to reveal the Commission's expectations for growth rates, inflation and unemployment in addition to To the future of interest rates for the next three years, before the events of the press conference of Federal Reserve Governor Jerome Powell on Wednesday.
We would like to point out that the Federal Reserve Governor Powell recently expressed the Federal Reserve's uncertainty about how and when the trade tensions will be resolved, noting that the Federal Commission takes seriously inflationary pressures for an extended period that may affect inflation expectations later, The Federal Reserve is abandoning its policy of patience and cutting interest rates on federal funds in the coming period.
In another context, we followed at the beginning of this week, President Donald Trump said that the presence of his counterpart, Chinese President Shi Jin Ping, the G20 summit, which will be held on 28-29 June in the city of Osaka, Japan, whether it is not important, His country's trade deal is likely to come from China in the end.
In the same context, US Commerce Secretary Wilbur Ross yesterday noted that there is a chance to reach a trade agreement between Washington and Beijing, but that will not happen during the events of the G20 summit, explaining that the negotiations with China is complex and will not be confirmed results until a deal is reached, To the US administration through its results on trade negotiations, while addressing the desire of his country to achieve a genuine free trade in the car markets.
On the other hand, the Ministry of Commerce announced yesterday that it decided to increase the anti-dumping duties imposed on certain types of imports from America and Europe, especially steel alloys, to 58% to 147%. That it had increased tariffs on 28 US products, in response to the recent imposition by the US administration of duties on imports of steel and aluminum.
Gold price was based on SMA 50 yesterday and started to rebound from there, approaching the 1346.70 level now, awaiting a breach of this level to confirm the continuation of the expected short-term and short term scenario, with the next key target at 1365.25.
Keep in mind that stability above 1326.00 is important to achieve the suggested targets, as breaching it will press the price lower towards the 1302.60 zones before any new attempt to rise.
The trading range for today is among the support at 1330.00 and resistance at 1360.00.
The general trend for today is bullish.