Gold futures fell during the Asian session on Tuesday after rising last weekend to its highest since June 15, with the decline of the dollar index since the beginning of this year according to the inverse relationship between them on the eve of developments and economic data expected on Monday from Ahead of the US economy, the world's largest economy.
At 03:30 GMT Gold futures for February delivery fell to $ 1,282.00 per ounce from $ 1.288.60 an ounce, as the US dollar index rose 0.25% to 95.26 from the opening at 95.50.
US markets are looking for a reading of the US trade balance, which is likely to improve the trade deficit and come up by $ 54.00 billion versus -5.50 from previous readers.
We are also looking for job opportunities, which are likely to rise 7.170 million versus 7.079 million from the previous reading. Otherwise, investors are eyeing the outcome of the trade talks between Washington and Beijing, which are being completed in China today.
Last weekend, Federal Reserve Governor Jerome Powell said at a panel discussion in Atlanta that the Federal Open Market Committee would be patient to monitor economic performance and was ready to adjust monetary policy quickly. And flexible depending on economic developments.
Powell also expressed his understanding of the concerns of the markets about the trade tensions and the slowdown in the Chinese economy, explaining that the Federal Committee puts these concerns in mind when making decisions on monetary policy, adding that the Federal Committee will not hesitate to change the plan to reduce the budget of the Federal Reserve of mortgage bonds And the government if necessary, while addressing the fact that economic data still confirm the high momentum of the economy.
He said that labor market data were strong and did not fuel inflationary concerns and that everyone should know that the Fed is committed to avoiding political affairs and that culture is continuing and will not be affected by criticism from the US administration, Looking forward to the upcoming trade talks between the world's biggest economists.
Gold holdings at SBDR Gold Trust, the world's largest gold-backed fund, rose by 2.94 metric tons to 798.25 metric tons last Friday. Gold prices last December made their third consecutive monthly gain after finishing their longest monthly loss march since late 1996.
The price of gold is open today with a negative negativity to break the 1286.70 level and trade below it. We note that the price recorded a low high during the last rally, indicating a possible intraday shift. We have a double top pattern with a confirmation level at 1276.70, The price will push further downside and visit 1262.50 directly.
The price is again approaching SMA 50, which had formed a price support level in the NLA last week and prevented it from falling further. The Stochastic is moving towards the oversold area
Therefore, the bearish trend will be likely in the coming sessions unless the levels of 1286.70 then 1295.00 are breached and stability above it.
The trading range for today is among the support at 1265.00 and resistance at 1295.00
Support and resistance:
The general trend for today is bearish