Gold Analysis 09.01.2019

Gold futures fell during the Asian session to see a rebound to the third session in four sessions of its highest since June 15, disregarding the decline of the dollar index according to the inverse relationship between them on the eve of developments and economic data expected Tuesday by the US economy, the largest economy In conjunction with ongoing trade talks between Washington and Beijing in China.

Gold futures for February delivery fell 0.20% to currently trade at $ 1,283.30 per ounce, showing a seven-month high from the opening at $ 1,285.90 an ounce, while the US dollar index 0.11% to 95.80, compared to the opening at 95.90.

We have followed US President Donald Trump's talk about US border security and the partial closure of the federal government for the third straight week. Otherwise, the markets are looking forward to what Federal Open Market Committee (FOMC) Chairman and Federal Reserve Chairman Eric Rosengreen Economic Outlook for the World's Largest Economy at the Boston Economic Club.

Before we see the release of the Federal Open Market Committee meeting held on December 18-19, in which the Fed's monetary policymakers agreed to raise the federal funds rate for the fourth time last year by 25 points Under the leadership of Federal Reserve Governor Jerome Powell to between 2.25% and 2.50%, which was expected by the markets at the time.

This comes hours after US President Donald Trump continued his criticism of the Fed by tweaking him through his official Twitter account, saying: "The economic figures really look good, you can imagine if I have zero long-term interest rates to play like the previous administration , Rather than increasing interest to normalize it quickly as we see it, it would be very easy !, the markets have risen significantly since the 2016 elections! "

On Friday, Federal Reserve Governor Jerome Powell, speaking at a panel discussion entitled "Fed Presidents: A Joint Interview" in Atlanta, said the Federal Open Market Committee would be patient to monitor economic performance and was ready to adjust monetary policy quickly and flexibly. Depending on economic developments.

Technical Analysis

Gold failed to settle above 1286.83 resistance to trade below this level. Where today's trading sessions opened below the moving average 7, therefore failure to breach the 1286.4 level will increase pressure on the price and push it towards support at 1275.00 and then target 1266.50

Stochastic gives negative signals and leads to the negativity of the oversold area, therefore this is likely to be reflected on the price movement and push towards the downside towards support 1266.45. If the price is able to breach the 1286.8 level and close above it will return gold to complete the upward trend towards target 1301.4

The trading range for today is among the support at 1265.00 and resistance at 1295.00

Support and resistance:

Support: 1266.5-1251.3-1238.4

Resistance: 1286.80-1295.00-1301.4

The general trend for today is bearish