Gold analysis 10.06.2019

Gold futures fell during the Asian session to rebound to its second highest session since April 19, 2018, as the dollar index rose for the first time in three sessions, rebounding to its second low since March 26 according to the inverse relationship In the wake of developments and economic data that followed the Chinese economy, the largest consumer of metals globally and on the brink of developments and economic data expected on Monday by the US economy, the largest economy in the world.

Gold futures for August delivery fell 0.59% to currently trade at $ 1,333.30 per ounce from the opening price of $ 1,341.20 an ounce. Gold futures closed at 1,346.10 last week. $ / Troy ounce. The US dollar index rose 0.11% to 96.75 from the opening at 96.65.

We have followed the Chinese economy, the second largest economy in the world and the second largest industrial nation after the United States, the General Administration of Customs released a reading of the trade balance index, which showed a surplus of 279 billion yuan, or 41.7 billion yuan, compared with 94 billion yuan ($ 13.8 billion) in April, beating expectations that the surplus would widen to 136 billion yuan ($ 23.2 billion).

In the same context, China's General Administration of Customs data showed last month that the annualized rise in the index of exports rose 1.1% compared to a decline of 2.7% in the annual reading for April, in contrast to the expectations of the widening of the decline to 3.9%, while the annual reading of imports decreased 8.5% Compared to a 4.0% rise in the previous year's reading, worse than the 3.5% drop.

On the other hand, investors expect the US economy to publish a statistical reading of employment opportunities and job turnover, which may reflect a rise to 7.50 million versus 7.49 million in March, coming hours after the disclosure of labor market data at the end of last week, which showed stability rates Unemployment at its lowest level in 49 years at 3.6% was little changed from April, in line with expectations.

In the same context, we also followed last Friday's reading of the Non-Farm Employment Change Index showed a slowdown in job creation to 75,000 added jobs, compared to 224,000 jobs added in April, while the average income per hour showed stable growth at 0.2%, unchanged from April, in contrast to expectations of a 0.3% growth rate.

The slower-than-expected job creation last month bolstered opportunities for a near-cut in Fed interest rates, especially after Fed Governor Jerome Powell said last Tuesday that the Fed would act appropriately to maintain a 2% growth rate and unemployment rates Low in America, saying he was closely watching the impact of trade tensions on the world's largest economy.

Technical Analysis

 The price of gold touched our main target at 1346.70, but found strong resistance there, which forced it to retreat significantly, to start a bearish correction for the recent bullish wave, and may be forced to some temporary decline and test the 1320.00 areas before resuming the bullish trend again.

Overall, we expect the overall bullish trend to continue for the upcoming sessions, and the breach of 1346.70 will open the way towards 1365.25 as the next major stop, while a break of 1320.30 will send the corrective correction to 1302.60 before any fresh attempt to rally.

The trading range for today is among the support at 1320.00 and resistance at 1350.00.

The general trend expected for today: Overall bullish.