Gold Analysis 23.01.2019

Gold futures fluctuated in a tight range in the Asian session to see their rebound to its second lowest session since December 27, negating the positive stability of the US dollar index according to the inverse relationship between them following the decisions and directions of the Bank of Japan and on the eve of developments and data Expected on Wednesday by the US economy, the world's largest economy.

Gold futures for February delivery rose 0.05% to currently trade at $ 1,284.10 an ounce, showing a four-week trough from the opening at $ 1.283.40 an ounce. 0.01% to 96.31 compared to the opening at 96.30.

We followed the CBJ's monetary policy makers to keep interest rates at 0.10%, which was expected by market analysts, as the Bank of Japan's monetary policy statement reflected the Japanese central bank's more flexible monetary policy , And attention is now being drawn to what will result from a press conference by Bank of Japan Governor Haruhiko Kuroda in Tokyo.

The Bank of China (CBB) injected 257.5 billion yuan ($ 38 billion) into local banks through a new medium-term lending instrument as part of the stimulus efforts to lend to small businesses and support Growth that has stimulated investors 'appetite for risk and has overshadowed investors' concerns about slowing global growth.

In addition, investors are currently waiting for the US economy to release housing market data with the Home Price Index reading, which may reflect slowing growth to 0.2% vs. 0.3% in October, before we see the Richmond Industrial Average The contraction of the contraction could be as low as $ 6 versus $ 8 in December.

US President George W. Bush's economic adviser Lawrence Cudlow said Tuesday that the Financial Times report that Washington had canceled a preliminary meeting with Chinese officials was incorrect and that the upcoming negotiations were "very, very important" and "decisive." The Chinese state of Liu is the United States in the last two days of this month in the second round of trade talks between Washington and Beijing.

In another context, the US Senate also decided yesterday to vote on Thursday to the legislation supported by the Democratic Party to end the partial closure of the federal government, the longest in the history of the United States of America, which marks the first sign of the possibility of serious negotiations between the ruling Republican Party and Democrats To restore the full functioning of the federal government after more than a month of partial closure.

Technical Analysis

The gold price tested and maintained stability below 1286.70, in conjunction with the emergence of overbought indicators through Stochastic, while the SMA 50 meets the mentioned resistance to add more strength to it.

Therefore, we believe that opportunities are available for a rebound and resuming the expected bearish trend over intraday basis, targeting 1262.50 mainly, while stability remains below 1286.70.

The trading range for today is among the support at 1260.00 and resistance at 1295.00

Support and resistance:

Support: 1266.47-1251.32-1238.40

Resistance: 12386.80-1295.50-1300.00

The general trend for today is bearish