Gold Analysis 21.02.2019

Gold futures fluctuated in a narrowly bullish range during the Asian session as the dollar index fell for the fifth consecutive session from its highest since December 17 according to the inverse relationship between them on the eve of developments and economic data expected Thursday by the US economy largest World economy and with the US-China trade talks in Washington.

At 04:04 am GMT, gold futures for April delivery rose 0.08% to currently trade at $ 1,342.70 per ounce compared with the opening at $ 1.341.70 an ounce, amid the decline of the US dollar index of 0.01% to 96.48 levels, explaining the sequence of rebound from Higher in two months compared to the opening at 96.49.

Investors from the US, the world's largest industrial nation, are waiting to see the Philadelphia Manufacturing Index, which may reflect a contraction of 14.1 versus January's 17.0, in conjunction with the February 16 reading of the Jobless Claims Index May reflect a drop of 11,000 to 228,000 versus 239,000 last week.

This comes in conjunction with the release of the Durable Goods Orders, which account for nearly half of consumer spending, which accounts for more than two-thirds of US GDP, which could reflect accelerated growth to 1.6% from 0.7% in November. The core reading of the index itself is up 0.3% from 0.4% in November.

Before we see the preliminary reading of the PMI index for the United States of America for the month of February, amid expectations of the expansion of the service sector to 54.4 compared to 54.2 in January, and the stability of the industrial sector at 54.9 compared to 54.8 With little change from what it was in January.

To the release of housing market data with the release of the existing home sales index, which may reflect a rise of 1.5% to 5.01 million, compared with 6.4% decline at 4.99 million in December, coinciding with the release of the leading indicators for the month of January Which could show a 0.1% rise versus a 0.1% decline in December.

This came hours after the minutes of the Federal Open Market Committee meeting, which was held on 29-30 January, during which Federal Reserve policy makers kept interest rates at between 2.25% and 2.50% Cut bond repurchase by $ 50 billion a month, and the committee said it was determined to be patient and monitor economic data before resuming tightening monetary policy.

In a press conference following the FOMC meeting at the end of last month, Federal Reserve Governor Jerome Powell noted that the Federal Reserve will be patient and monitor economic data as the downside risks to the economy mount from global growth and financial market volatility, Explaining that the continuation of that approach will depend on the economic data during the coming period.

Technical analysis:

The price of gold provided negative trading yesterday to test the SMA 50, where a bearish correction is being made for the recent bullish wave that started from 1302.34 areas, noting that Stochastic is showing positive signs now, waiting for the price to resume the bullish wave

Therefore, we continue to favor the bullishness over intraday and short term, noting that our awaited targets start at 1350.00 then 1365.05, while 1336.20 represents the break down the correctional wave to reach 1330.00 and may extend to 1318.00 before any new attempt to rise.

The trading range for today is expected among the support at 1330.00 and resistance at 1350.00.

The general trend for today is bullish.