Gold Analysis 25.02.2019

Gold futures traded in a narrowly bullish range during the Asian session as the dollar index fell for the sixth session in seven sessions from its highest since Dec. 17 according to the inverse relationship between them on the eve of developments and economic data expected Monday by the US economy Amid a look at the Fed's midterm testimony to Governor Jerome Powell.

Gold futures for April delivery rose 0.22% to currently trade at $ 1,333.60 per ounce, compared with the opening at $ 1,331.90 an ounce, amid the decline of the dollar index 0.06% to levels of 96.46, explaining the sequence of the rebound from Higher in three months compared to the opening at 96.52.

The markets are looking for the US economy, the world's largest economy, for the final reading of the wholesale stocks index, which could reflect a stable 0.3% growth, unchanged from the December reading. This comes before we see the participation of the Deputy Governor of the Reserve Bank Federalist Richard Clarida in a panel discussion entitled "Federal Reserve: A Conversation with Community Leaders in South Dallas" in Texas.

This comes hours before Federal Reserve Governor Jerome Powell's semi-annual testimony on monetary policy before the Senate Banking Committee on Tuesday and before the House Financial Services Committee after Wednesday in Washington before Powell delivered a speech entitled "Economic Developments Marginal and long-term challenges "next Thursday in New York.

"The United States has made great progress in our trade talks with China on important structural issues, including intellectual property protection, technology transfer, agriculture, services, technology and technology," said Trump, Currency and many other issues. "The markets are looking forward to meet Trump with his Chinese counterpart Xi Jinping next month and reach a comprehensive trade agreement.

On the other hand, we have followed earlier this month, the Russian Ministry of Economy announced that the production of Russia's gold last year 2018 rise to 314.42 tons compared with 306.9 tons in 2017, following the comments of the World Gold Council at the end of last month That Russia was the most buying gold in 2018 as it seeks to reduce the dependence on the dollar because of US sanctions imposed on them.

According to the World Gold Council, global central bank purchases of gold rose during the year 2018 to their highest level since 1967. Purchases rose to 651.5 metric tons, up 74% from 2017 at 375 metric tons, Of the countries to buy the yellow metal topped by Russia by 274 metric tons, which overtook China, the largest consumer of metals globally and inspire both Poland and Kazakhstan.

Global gold consumption rose to 4,345.1 metric tons last year from 4,159.9 metric tons in 2017. Retail investment in bullion and gold coins rose 4 percent to 1,090.2 metric tons, supported by Iran's demand increase of 222 percent to 62 metric tons, Demand for jewelry has stabilized at around 2,200 metric tons with increased consumption compensation in both China, the United States and Russia for lower demand from the Middle East and India.

In contrast, the demand for financial institutions fell by 67% from the year 2017, when the world supply of gold increased 1% to a total of 4,490.2 metric tons in 2018. The gold futures contracts last month made the fourth monthly gain, respectively, illustrated Has seen its longest monthly gains since late 2010, after ending its longest monthly loss march since late 1996.

Technical analysis:

Gold is hovering around the SMA 50, and we see that Stochastic is losing its positive momentum to enter the overbought areas, waiting for the price to resume the corrective correction, which targets the 1319.26 level mainly.

Keep in mind that a break of 1336.20 and stability above it will stop the negative scenario and push the price to regain the ascending main course again.

The trading range for today is among the key support at 1310.00 and resistance at 1340.00

Support and resistance:

Support: 1322.95-1317.40-1314.00

Resistance: 1332.10-1338.70-1346.16

The general trend for today is bearish