Gold Analysis 16.01.2019

Gold futures traded in a tight range slipping towards the Asian session as the dollar index rose for the fourth session in five sessions from its lowest since October 16, according to the inverse relationship between them on the eve of developments and economic data expected Wednesday by the economy And the simultaneous stabilization of the partial closure of the federal government in the United States.

Gold futures for February delivery fell 0.07% to currently trade at $ 1,288.70 per ounce from the opening at $ 1,289.60 an ounce, while the US dollar index rose 0.07% to 96.01 compared to the opening at 95.94 .

Investors are looking ahead to the reading of the import price index, which may reflect a 1.0% drop from a 0.5% rise in November before we see housing market data released with the housing index reading by the National Association of Home Builders Reflecting a widening to 61 versus 60 in December.

The markets are also looking forward later today to unveil the Beige report, which is important in being issued two weeks before the FOMC meeting, one of the pillars on which the Fed's monetary policymakers build their decisions and attitudes to support and stimulate the US economy. That the next meeting of the next Federal Commission will be held on 29-30 of January.

Otherwise, on Tuesday we followed the British Parliament's vote by rejecting Britain's exit agreement from the European Union and we are expected to see later today a vote of no-confidence from Prime Minister Thiersa Mae's government amid growing opportunities for chaotic secession of the UK from the European Union or the abolition of the process The entire disengagement over the next few weeks

Technical Analysis

Gold continues to fluctuate within the ascending triangle, waiting for a breach of 1296.00 to activate the positive effect of this pattern and then to get a positive incentive that helps push the price to continue the short term bullish trend targeting 1316.65 as a next stop.

The SMA 7 is moving below the price in a sideways path to support it while the SMA 20 is moving towards the price and we can see a cross between the 7 and 20 averages in the near term if the price continues to move sideways and the price model fails

Stability above 1286.70 is important for the continuation of the expected rally, as breaching it will press the price to initial test at 1262.50.

The trading range for today is expected among the support at 1280.00 and resistance at 1316.00

Support and Resistance:

Support: 1286.83-1262.50-1251.32

Resistance: 1301.00-1316.00-1318.5

The general trend for today is bullish