The pair of gold/ USD in the same trading range between the average of $1180 and 1300 USD/ Ounce. The pair made some profits during yesterday session, because of turmoil in Portugal and mixed economic data from the world’s largest economy, has led to increasing the attractiveness of gold as a safe asset. The escalating tension in Egypt is one of the other factors that support gold prices.
The unemployment insurance in USA had declined 5000 to reach 343000 according to the labor department data, published yesterday. Gold markets remain stable during the Asian trading session, where the majority of the investors in wait for the official announcement of payrolls report non-farm sectors in USA. Although the geopolitical tensions usually lead to the increase of demand for gold, the size of today’s trading is expected to be minimal as a result of U.S. financial markets holiday Fourth of July, American Independence Day.
This indicates that the short-term pattern is flat and that the pair is looking for support trend. For this reason, I will just monitor the market. In the case of moving and gold decided to take the upward channel we will wait for support at $1266 USD/ Ounce of gold, from a technical point of view the market will take the downward channel but it will decline slightly, in this case we had to monitor the level of $1240 USD/ Ounce.