Gold futures traded in a narrowly bullish range during the Asian session to see their rebound for the second consecutive session from its lowest since July 19, when it fell to its lowest level in a year, suppressing the resumption of USD rally for the fourth session in five sessions according to Of the inverse relationship between them amid the scarcity of economic data on Monday by the US economy, the largest economy in the world.
Gold futures for December delivery rose 0.03% to currently trade at $ 1,223.60 per ounce from the opening at $ 1,223.20 an ounce, while the US dollar index rose 0.13% to 95.29 compared to the opening. At 95.16.
This week, the US economy released the labor market data for July, which showed the unemployment rate fell to 3.9%, in line with expectations, compared to 4.0% in the previous reading for June. This came in conjunction with the reading of the average income index At the time, the pace of growth accelerated to 0.3%, also in line with expectations for 0.1% in June.
In the same context, we also followed last Friday’s reading of the index of change in the employment of non-agricultural sectors, which showed a slow pace of job creation to 157 thousand compared with 248 thousand jobs added in June, worse than expectations of 191 thousand added jobs, The trade balance index then widened to $ 46.3 billion from $ 43.2 billion in May, above expectations of a $ 46.5 billion deficit.
The index of the Service Supply Index, which showed a contraction of 55.7 vs. 59.1 in June, was worse than expectations at 58.6. We would like to point out that the service supply index, which is a composite indicator of the conditions of utilities and retail, in addition to housing, Healthcare and finance are important because the US service sector accounts for more than two-thirds of US GDP.
Last week’s disappointing US economic data was disappointing, limiting the chances for Fed monetary policy makers to raise federal funds rates four times this year and restore opportunities for members of the Federal Open Market Commission Will raise interest again only this year by the September 26 meeting.
The Federal Reserve monetary policy makers kept the short-term benchmark interest rates at between 1.75% and 2.00% at the FOMC meeting held at the end of July and early August. By analysts in the markets at the time, with reference to move forward towards tightening monetary policy and plans to normalize the budget.