Gold Analysis 24.01.2019

Gold futures fluctuated in a tight range slipping during the Asian session, as the US dollar index fell for the third consecutive session from its highest since January 4 according to the inverse relationship between them on the eve of the European Central Bank's decisions and directions and the developments of the partial closure of the government In addition to developments and data expected Thursday by the US economy, the world's largest economy.

Gold futures for February delivery fell 0.12% to currently trade at $ 1,282.50 per ounce, compared to the opening at $ 1,284.00 per ounce, while the dollar index fell 0.06% to 96.07 levels, showing a rebound from Higher in three weeks compared to the opening at 96.12.

The ECB meeting, which is expected to hold interest rates at current zero levels and stabilize the marginal lending rate at 0.25% with a negative deposit rate of -0.40% (ECB) President Mario Draghi at the European Central Bank Press Conference.

On the other hand, markets are looking to the US Senate vote later today on Democratic-backed legislation to end the partial closure of the federal government, the longest in the history of the United States of America, knowing that President Donald Trump has repeatedly noted that he did not Provisional funding for the government is approved by Congress unless it includes a package to fund a border wall with Mexico.

Otherwise, investors are currently waiting for the US economy to release the Jobless Claims reading for the week ending January 19, which could reflect a 6K increase to 219,000 in the previous weekly reading before we see the initial reading of the Managers Index Industrial Procurement and Service Markit for the United States and the release of leading indicators for the last month.

Technical Analysis

Gold is trading below 1286.70, so the negative pressure remains intact, waiting for a break of 1276.50 to get a good incentive to support the bearish intraday trend targeting the 1262.50 level.

Keep in mind that a break of 1286.70 will halt the expected decline and lead the price to achieve positive targets starting at 1316.65.

The trading range for today is among the support at 1260.00 and resistance at 1290.00

Support and resistance:

Support: 1276.50-1266.00-1251.00

Resistance: 1286.83-1295.50-1301.00

The general trend for today is bearish