Gold Analysis 22.04.2019

Gold futures rose during the Asian session to see their rebound for the second straight session since December 27 amid the negative stability of the dollar index according to the inverse relationship between them on the eve of developments and economic data expected on Monday by the US economy the largest economy The world and with most of the global financial markets absent because of the Easter holiday.

Gold futures for June delivery rose 0.20% to currently trade at $ 1,280.40 an ounce, showing a four-month low from the opening at $ 1,278.00 an ounce, amid a drop in the US dollar index 0.01% to 97.37 compared to the opening at 97.38.

Investors are currently waiting for the US economy to release housing data as the Existing Home Sales Index, which may reflect a decline of 3.7% to 5.31 million, versus 11.8% at 5.51 million homes in February. Initial US GDP reading for the first quarter by the end of this week.

Technical analysis:

The price of gold is showing positive trading now to retest the previously broken neckline of the triple top pattern shown in the picture, which represents an important resistance at 1282.00. As we mentioned in our recent reports, the price needs to remain below this level to keep the bearish scenario intact for the coming period. Price to visit level 1302.60 as a first positive target.

Stochastic is entering overbought areas now, while SMA 50 is a continuous negative pressure against the price. Therefore, we believe that opportunities are available to resume negative trading during the coming sessions, targeting 1253.20 as a corrective correction.

The trading range for today is among the support at 1260.00 and resistance at 1290.00.

The general trend for today is bearish.