Gold rebounds from 2-week low on dollar's negative stability

Gold futures fluctuated higher during the Asian session, to see their rebound for the third session from its lowest since June 3rd amid the decline of the dollar index, according to the inverse relationship between them, and on the threshold of developments and economic data expected Thursday by the US economy.

As of 3:53 GMT, gold futures (August delivery) rose 0.05% to currently trade at $1,338.40 per ounce from the opening of $1,337.80, amid the fall of the US dollar index by 0.01% to 96.95 from the opening at 96.96.

Investors are currently waiting for the US economy to release a reading of the unemployment claims index for the week ending on June 7, which may reflect a decrease of 3 thousand requests to 215 thousand requests, in conjunction with the release of the index of import prices, which may reflect a decline by 0.3% against an increase by 0.3% in April, while the annual reading for the same index may show a widening of the decline to 1.4% vs. 0.2%.

Otherwise, we have followed yesterday the remarks of US Commerce Secretary Wilbur Ross, during which he noted that both President Donald Trump and his Chinese counterpart, Xi Jinping, may decide to reopen trade talks at the G20 summit which is scheduled for June 28-29 in Japan, but he added that it will not be the place of the trade agreement signing between countries, adding that President Trump wants structural reforms in the trade agreement with China.

US Trade Secretary Ross also said that the Federal Reserve should have reconsidered the recent increase in interest on federal funds as premature, this comes a week before the FOMC meeting in Washington, which is due to be unveil the Commission's expectations for growth rates, inflation and unemployment as well as future interest rates for the next three years.

US President Trump said earlier this week that a trade deal with China could be reached because of tariffs and that Huawei could be part of the trade deal with China. He said that the strong economic growth for the US during the first quarter, which exceeded expectations came from tariffs.

In the same context, US President Trump warned on Monday that if his Chinese counterpart Xi Jinping did not attend the G20 summit, he would immediately impose tariffs on Chinese goods, saying that Beijing should reach a trade deal with Washington because of its need to reach agreement, adding that China is currently exposed to complete destruction.

US President Trump noted at the time that foreign companies were working to leave China and go to other countries, including the United States. He said that the lack of a trade agreement with China would mean more tariffs, adding that tariffs are good and give the US a huge competitive advantage, "We were talking about an agreement with Mexico for months and there was no agreement even to impose tariffs."

US President Trump has repeatedly noted that China can expect to face more tariffs on its exports to the country, adding that America has already prepared a list of Chinese goods worth $300 billion, and that this list may be subject to tariffs, which came after Washington and Beijing raised tariffs on each other's goods to 25% from 10% last month in an escalation of trade protectionism among them.