Gold analysis 20.05.2019

Gold futures fluctuated in a narrowly bearish range to see their fifth straight session rebound since April 11 as the US dollar index rose for the sixth consecutive session from its lowest since 18 of the same month according to the inverse relationship between them after the data Economic news that followed Monday's economic growth as the economic data of the US economy worsened over the weekend.

Gold futures for June delivery fell 0.07% to currently trade at $ 1,276.50 per ounce, showing a six-week high rebound compared to the opening at $ 1,277.60 an ounce, amid a rally in the US Dollar Index 0.05% to 98.02, the highest since May 3, compared with the opening at 97.96.

Technical Analysis

Gold has found strong support at 1275.30 to settle now, as the rising trend line meets 38.2% Fibonacci correction and Stochastic is showing oversold territory, supporting the strength of the current areas and providing opportunities for recovery in the coming sessions.

On the other hand, trading below the resistance line of the bearish correction and the negative pressure formed by SMA 50 indicates the possibility of a return to the downside correction.

Therefore, this contradiction between the technical factors makes us prefer to continue our neutrality until the price confirms break the support 1275.30 or break the resistance 1285.00, noting that breaking the support mentioned will press the price to visit the level of 1253.20 as the next corrective target, while breaking the resistance will stimulate the price to gain Start at 1302.60 and extend to 1320.00 after exceeding the previous level.

The trading range for today is among the support at 1265.00 and resistance at 1290.00.

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