Gold futures traded in a tight range slipping into the Asian session to see their rebound to the third high since April 19, 2018, as the dollar index rebounded to its third low since March 26 according to the relationship. On the eve of developments and economic data expected Tuesday by the US economy, the largest economy in the world.
Gold futures for August delivery fell 0.02% to currently trade at $ 1,331.50 per ounce compared to the opening at $ 1,331.80 an ounce. Gold futures closed the session at $ 1,329.30. The US Dollar Index rose 0.04% to 96.79 from the opening at 96.74.
Investors are waiting for the US economy to release the Producer Price Index (PPI), an initial index of inflationary pressures, which could reflect slowing growth to 0.1% versus 0.2% in April. 2.2% in the previous annual reading for April.
In the same context, the core reading of the PPI may accelerate the pace of growth to 0.2% from 0.1% in April, while the core annualized reading of the same index may show a slowdown in growth to 2.3% from 2.4% in the previous April reading , And comes hours before the disclosure of inflation data for the last month with the release of the Consumer Price Index on Wednesday.
In addition, last Friday we followed up with the Mexican delegation that visited Washington last week for understandings on the immigration and trade file under which a 5% tariff on US imports from Mexico, which was supposed to come into effect early this week, , Which in one way or another stimulated risk appetite in the financial markets and in turn weighed on gold prices, which is a safe haven.
Gold is trading around the 1326.00 level since yesterday, and the price is positively supported by the 50 SMA, while Stochastic is providing a positive cross signal now, which is a positive catalyst awaiting the pair to push the pair higher again.
Our first target is at 1346.70, and breaching it will push the price to 1365.25 directly, while the break of 1320.30 represents the key to extend the intraday correction to reach 1302.60 before attempting to return to the upside again.
The trading range for today is among the support at 1320.00 and resistance at 1346.00.
The general trend expected for today: Overall bullish.