Gold Analysis 16.04.2019

Gold futures fluctuated in a tight range slipping towards the Asian session to see their fifth session rebound since March 27 as the US dollar index rose against the back of the US Federal Open Market Committee (FOMC) Rosinger at Davidson College, North Carolina, on the eve of economic developments and data expected Tuesday by the US economy, the world's largest economy.

Gold futures for June delivery fell 0.20% to currently trade at $ 1,288.20 an ounce, showing a three-week rally from the opening at $ 1,290.80 per ounce. 0.01% to 96.94 compared to the opening at 96.93.

The markets are currently looking at the US economy, the world's largest industrial country, for the Industrial Production Index, which may reflect a rapid growth rate of 0.2% versus 0.1% in February, while the Energy Use Index showed growth accelerated to 79.2% versus 78.2 And before we see the housing index reading by the National Association of Home Builders, which may reflect a widening to 63 versus 62 in March.

Other than this, we followed earlier this week US President Donald Trump's criticism of the Fed again to abandon its expansionist policies and raise interest rates on federal funds, which weighed heavily on the performance of US equity indices. Trump expressed his Twitter through his official Twitter account that " If the Fed did its job correctly, which it did not do, the stock market would have gone up by 5-10,000 extra points.

Trump also noted that the US growth rate, in that case, would have exceeded 4% instead of 3% with almost no inflationary pressures. The Fed should not have abandoned expansionary policies and adopted monetary tightening in a pre-emptive move to counter a possible flare-up To inflationary pressures did not happen, especially with the decline in oil prices in the fourth quarter of last year.

In another context, we followed the Japanese Economy Minister Toshimitsu Motegi told a news conference with US Trade Representative Robert Laitzer yesterday in Washington that the trade exchange between his country and the United States "frank and good exchange," in response to the US President Trump said recently that he changed Satisfied about the trade surplus for Japan with his country reached a peak of $ 69 billion and that he wants to reach a bilateral agreement to deal with it.

US trade talks between Japan and the United States are expected to continue until Thursday, and markets are also eyeing the development of trade negotiations between the United States and China amid expectations of a deal to avoid a trade war. US Treasury Secretary Stephen Manuchen said yesterday that trade talks with China Central told him that the two sides still have a lot of work to complete.

Technical analysis:

The price of gold fluctuates near the neckline of the triangle top pattern shown above, and the price is under negative pressure coming from SMA 50, while stochastic loses its positive momentum gradually.

Therefore, these factors encourage us to continue with the bearishness over intraday and short term basis, noting that our first target is at 1275.30, as the above model supports the chances of extending the downside wave to 1253.20 and 1231.13 areas, The expected bearish wave depends on stability below 1302.60 and 1307.80.

The trading range for today is among the support at 1270.00 and resistance at 1295.00

The general trend for today is bearish