Gold Analysis 28.01.2019

Gold futures traded in a tight range slipping towards the Asian session to see their rebound to its second session since June 15, as the US dollar index fell to its lowest level since January 15, Economic data by the US economy earlier this week, which carries with it the meeting of the Federal Open Market Committee and the vote of the British parliament on a British exit from the Union in addition to trade talks in Washington.

At 03:47 am GMT, gold futures for April delivery fell 0.05% to currently trade at $ 1,308.00 per ounce from the opening at $ 1,308.50 per ounce. The US dollar index fell 0.12% to 95.70, Two weeks from the opening at 95.79.

Investors are looking forward to what ECB President Mario Draghi's testimony to the economy and monetary policy will bring to the attention of the European Parliament's Economic and Monetary Affairs Committee in Brussels, before we see the speech of the Bank of England Governor Mark Carney in a panel discussion with other members of the Policy Committee Cash to the Bank of England about the future of money at the Future Forum of the British Center in London.

Elsewhere, markets are looking for the outcome of the FOMC meeting in Washington on 29-30 of this month amid expectations that the committee, led by Federal Reserve Governor Jerome Powell, will remain on the federal funds rate between 2.25% and 2.50% Raised four times last year, as the move to cut back on government bond purchases and mortgage bonds by $ 50 billion a month.

In another context, we followed at the end of last week the statements of US President Donald Trump, which he said he asked Congress to work on legislation to reopen the federal government until mid-February, ending the longest partial closure of the federal government in the history of America, Hours after the federal police arrested Roger Stone, a US presidential adviser on charges of collaborating with WikiLeaks.

Technical Analysis

The price of gold breached the 1286.70 level after closing last week, opening the way for the corrective correction to reach 1321.65 mainly, which represents the 78.6% Fibonacci retracement of the decline from 1365.05 to 1160.00.

Therefore, the bullish trend will be likely over the coming period, consistently within the ascending channel appearing in the image, noting that stability above 1286.70 is important for the continuation of the suggested positive scenario.

The trading range for today is among the support at 1290.00 and resistance at 1316.65

The general trend for today is bullish