Gold price is almost steady at the $1,400 mark ahead of the economic data due to release on Thursday and Friday. Comex gold futures for August delivery were up by $0.60 to reach $1,397.80 while gold price in the spot market was down by $2.90 to be traded at $1,397.50.
The JPY gained against the USD and the Japanese stock market fell overnight. The Nikkei stock index lost 18% of its value from the end of May till now.
Europe’s economic data released remained weak. An 0.5% decline in the retail sales in April and a 1.1% y/y decline pressured the EUR. Moreover, the manufacturing and service sectors readings were up from 46.9 in April to be 47.7, which remained a contraction signal but with a slower pace.
The USD was slightly lower on Wednesday. The apparent strength of the USD is more a result of the weaker EUR.
Investors and traders look forward anxiously for the economic data due to release this week. Today, Wednesday, the ADP national employment report, MBA mortgage survey, manufacturers’ shipments and inventories, the global service PMI and the awaited prize, the Fed’s beige book. The Beige Book, or the Summary of Commentary on Current Economic Conditions is expected to give a clearer picture of the feds plans for the next few months. This Thursday, the European Central Bank (ECB) is supposed to hold its monthly meeting. While the US employment record is due to be released on Friday.
Nothing has changed on the technical charts, the bears still in control and there is an opportunity for the bulls to reverse the tide. The technical resistance today should be at $1,407.90 then $1,416.50 while the support is at $1,388.30 then at $1,380.