Gold Analysis 01.04.2019

Gold futures fluctuated in a narrow upward range during the Asian session to see their rebound for the second straight session since March 8th, capping the US Dollar index for the fifth consecutive session according to the inverse relationship between them following the developments and economic data that followed. On the Chinese economy, the largest consumer of metals globally and on the brink of developments and economic data expected on Monday by the US economy.

Gold futures for June delivery rose 0.04% to currently trade at $ 1,297.80 per ounce from the opening price of $ 1,297.20 an ounce. It opened this week at a bullish price gap after closing. Last week at $ 1,290.80 per ounce while the US dollar index rose 0.02% to 97.20 compared to the opening at 97.18, and he started this week's trading at a price gap after closing last week at 97.21.

We have followed the Chinese economy, the world's second-largest economy and the world's second largest industrial nation, with the Industrial and Service Purchasing Managers' Indexes published by the China Logistics and Procurement Federation (CFLP), which showed the industrial sector expanded to 50.5 versus a contraction of 49.2 in the February reading, In February, outperforming forecasts that the deflation contracted to 49.5, and the service sector expanded to 54.8 versus 54.3, beating expectations of 54.5.

On the other hand, investors are currently waiting for the US economy to reveal a reading of retail sales, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which could accelerate growth to 0.3% from 0.2% in January, while The core reading of the index itself may show a slowdown in growth to 0.4% from 0.9% in January.

The markets are also looking for the final PMI reading from Markit for the US last month, which may reflect the stability of the widening at 52.5 vs. 53.0 in February, before the ISI Manufacturing Index, which may show a widespread to 54.3 Compared to 54.2 in February, in conjunction with the January Wholesale Inventories reading.

Technical analysis:

The price of gold remains steady below 1301.60, and we see that Stochastic is giving a negative signal now, which is a negative incentive waiting for the price to resume the expected bearish wave for the next period targeting the 1275.30 test as the next major station.

Moving averages above the price in a bearish order of 7-20-50 are therefore a negative pressure on the price to land.

Therefore, the bearish correction will remain likely during the coming sessions unless the price is able to breach the 1301.60 level and stabilize above it again.

The trading range for today is among the support at 1275.00 and resistance at 1301.60.

Support and resistance:

• Support: 1284.00-1279.00-1275.00;
• Resistance: 1293.50-1301.60-1304.75.

The general trend for today is bearish.