Gold rebounds, shrugs off dollar's rise in 4 consecutive sessions

2019-04-26 09:17:43 GMT (
Gold rebounds, shrugs off dollar's rise in 4 consecutive sessions

Gold futures fluctuated higher in a narrow range during the Asian session, witnessing its rebound from its lowest since December 26th, despite the positive stabilization of the dollar index near the highest in two years, despite the inverse relationship between them and on the threshold of economic data expected today, by the US economy, the largest economy in the world.


As of 03:07 GMT, gold futures (June 15th delivery) rose 0.28% to currently trade at $1,282.60 per ounce, rebounding from its 4-month low at $1,279.10 an ounce, while the US dollar index rose 0.02% to 98.14, compared to the opening at 98.12.


On the other hand, investors are looking for the US economy to release the preliminary reading of GDP for the first quarter, which may show a stability of the largest economy in the world at 2.2%, unchanged from the previous quarter, while the preliminary reading of GDP price-adjusted may reflect a slowing growth to 1.3% versus 1.8% in the fourth quarter of last year.


This comes ahead of the final reading of the University of Michigan consumer confidence index, which may reflect a widening to 97.1 compared with the April reading of 96.9 versus 98.4 in March, to the release of the US Treasury Department's semi-annual report on International economic policies and exchange rates.


White House Press Secretary and Spokeswoman, Sarah Sanders, said on Tuesday that the United States Trade Representative, Robert Lighthizer, and the United States Secretary of the Treasury, Steven Mnuchin, will travel to Beijing by the end of this month for another round of trade talks and will meet Vice Premier of the People's Republic of China, Liu He, who will head a Chinese delegation that will visit Washington for further discussions and trade talks on May 8th.


On the other hand, experts at Standard Chartered Bank expect gold prices to rise again to last year's peak of $1,365 an ounce, as prices nearing the peak and falling to its lowest level this year, amid speculation that one of the main assumptions that the price recovery may support the Fed's adherence to the patience policy and the suspension of monetary tightening plans and interest rates.


According to experts, the assumption is based on the Federal Reserve's preparation for a possible recession by 2021, which could support the performance of gold as a safe haven, as they point to a surge in global central bank purchases and recent high demand for gold by China and India, by which supports the price cycle. Accordingly, they expect prices to rise to $1,365 an ounce and that the average price next year would be $1,375 an ounce.

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