Gold Analysis 17-05-2019

Gold futures rallied in a tight range slipping into the Asian session to see their fourth straight session rebound since April 11, negating the negative stability of the US dollar index, rebounding from the highest since May 3rd according to the inverse relationship On the eve of developments and economic data expected Friday by the US economy, the largest economy in the world.   

Gold futures for June delivery fell 0.05% to currently trade at $ 1,286.30 an ounce, showing a five-week rally from the opening at $ 1.287.20 an ounce, while the dollar index 0.01% to 97.82 compared to the opening at 97.83.   

Investors are currently eyeing the US economy for the first reading of the University of Michigan consumer confidence index, which may reflect a widening to 97.8 versus 97.2 last April, as consumers forecast inflation for one year ahead and five years ahead, Leading indicators that may reflect slower growth to 0.2% vs. 0.4% in March. 

Gold has tested the 1286.00 support level and is now stabilizing around it, which signals the price direction to return to the downside correction, but needs a daily close below the mentioned level to confirm the extension of the downside wave towards 1275.30 and 1253.20.   

In contrast, we note that a breach of 1302.60 will lead the price to regain the main bullish trend and achieve positive targets of 1320.00 and then 1346.73.   

Thus, we will continue to neutralize until the price confirms the breach of support 1286.00 or breach of the resistance 1302.60.   

The trading range for today is among the support at 1275.00 and resistance at 1300.00   

The expected general trend today: Depends on the levels mentioned in the report