Gold Analysis 18.04.2019

Gold futures fluctuated in a tight range slipping towards the Asian session after yesterday's gains of the year 2019 were offset by the longest daily losing streak since October 2016 amid the positive stability of the US dollar index on the back of developments And economic data expected Thursday by the US economy, the largest economy in the world.

Gold futures for June delivery fell 0.13% to currently trade at $ 1,274.50 per ounce, its lowest since December 26 compared to the opening at $ 1,276.20 an ounce. USD 0.01% to 97.02 compared to the opening at 97.01.

Investors are currently waiting for the US economy to disclose the reading of retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which could reflect a rise of 0.9% versus a 0.2% drop in February. Up 0.7% from 0.4% in February.

This is in line with the April 13th Jobless Claims reading, which may reflect an 11,000-point increase to 207,000, and the Philadelphia Manufacturing Index, which may reflect a contraction of 11.2 versus 13.7 in March, In March, before we saw the initial reading of Markt Industrial and Service PMI by Markit from the United States.

It is expected that the initial reading of the PMI index for America will extend to 52.8 compared to 52.4 in March, while the preliminary reading of the PMI may show a contraction of 55.0 to 55.3, leading to a reading of wholesale stocks that may indicate slower growth To 0.3% versus 0.8% in January, and leading indicators showed accelerated growth to 0.4% versus 0.2% in February.

In addition, the markets are looking at the ongoing trade negotiations between the United States and Japan in Washington, as well as the recent negotiations with Beijing and the protectionism that the US administration intends to take with the European Union, threatening Brussels to respond and impose customs duties as well. About the EU's support for the European Airbus competition for the Boeing Company of America.

Technical analysis:

The price of gold confirmed the breach of 1275.30 after closing the daily candlestick below it, which supports the continuation of our expectations for the downside trend effectively during the coming period, paving the way for the move towards 1253.20 and then 1231.13 as the next main targets.

We note that the expected decline is affected by the completion of the three-way triangle pattern. The price is under constant negative pressure from SMA 50, taking into consideration that breaching the levels of 1275.30 and 1282.00 will push the price to test the level of 1302.60 again before any new attempt to decline.

The trading range for today is among the support at 1253.20 and resistance at 1282.00

The general trend for today is bearish