Gold futures rallied during the Asian session to rebound to its second lowest session since June 20, negating the positive stability of the US dollar index, adding to its fourth session in six sessions from its lowest since March 20 according to the inverse relationship Between them amid a lack of economic data Tuesday by the US economy, the largest economy in the world.
Gold futures for August delivery rose 0.41% to currently trade at $ 1,391.90 per ounce from the opening price of $ 1,386.20 an ounce. The contracts started today trading on a bearish price gap after closing Yesterday at $ 1,389.30 per ounce, while the dollar index rose 0.03% to 96.84 compared to the opening at 96.81.
Investors are waiting for what Federal Open Market Committee (FOMC) Chairman and Federal Reserve Bank of New York Chairman John Williams, who is scheduled to take part in a panel discussion on the future of global economic and monetary policy at the Zurich event, This comes amid the markets looking for any hints about the future interest rates on federal funds, especially after the decline of market expectations relative to the reduction during the next meeting of the Federal Commission.
Other than that, last weekend we followed US President Donald Trump's announcement of a trade truce with China and that Chinese technologies were allowed to buy US products. In return, Chinese President Xi Jinping noted his country's intention to resume buying US agricultural products, Stimulating risk appetite in financial markets earlier this week, before we see the US administration's proposal yesterday to impose tariffs on European goods worth $ 4 billion, which in one way or another rekindles concerns about US trade protectionism.
The price of gold touched the support of the ascending channel and stabilizes its proximity, and it is difficult to overcome it until now, while the negative impact of the double top pattern remains effective, awaiting the price to achieve further decline and touching 38.2% Fibonacci at 1376.30, which is our next main target.
Therefore, we will continue to push the downside if the price does not push to breach the 1400.00 level and stability above it, noting that a break of 1376.30 will push the price to 1357.00 directly.
The trading range for today is among the support at 1370.00 and resistance at 1400.00.
The general trend for today is bearish.