Gold Analysis 15.03.2019

Gold futures traded in a narrow upward range during the Asian session as the US dollar index fell for the fifth session in seven sessions from its highest since June 21, 2017 according to the inverse relationship between them on the eve of decisions and directions of the Bank of Japan in addition to developments And economic data expected Friday by the US economy, the largest economy in the world.

Gold futures for April delivery rose 0.19% to currently trade at $ 1,298.20 per ounce from the opening at $ 1,295.60 per ounce, while the US dollar index fell 0.08% to 96.65 compared to the opening at 96.72 .

The markets are now looking for the outcome of the BoJ meeting, during which the Bank of Japan's monetary policy makers could expand their stimulus and provide more flexibility in monetary policy, especially after the drop in Japan's exports, the world's third largest economy, Industrialization there because of the recent US trade protectionism that has weighed on world demand.

Otherwise, investors are looking ahead to the US economy to release the New York Manufacturing Index, which may extend to 10.1 vs. 8.8 in February before we see the world's largest industrial producer reading Industrial Production Index Up 0.4% from 0.6% in January. The Energy Use Index showed accelerated growth to 78.5% versus 78.2%.

Leading to the first reading of the University of Michigan consumer confidence index, which may reflect a widening to 95.5 versus 93.8 in February with the release of consumer expectations for inflation for one year to come and five years ahead, in conjunction with the publication of a statistical employment opportunities and job rotation that may Reflecting a decrease to 7.27 million versus 7.34 million last December.

Technical Analysis

The price of gold ended yesterday's trading below 1301.60, which signals the direction of the price to return to the downside correction again, but we see that Stochastic is providing positive signals now clear, to start the price to provide positive trading with the opening day and trying to rise again.

Therefore, we prefer to stop the neutrality temporarily until the price confirms the position towards the level of 1301.60, noting that failure to break it will put the price under the downward correction correction which starts at 1279.06, while breaching it and stability above it will return the price to the main trend again, 1320.00 and then 1346.70 as next major stations.

The trading range for today is among the support at 1285.00 and resistance at 1320.00

The expected general trend for today: neutral