Gold analysis 24.05.2019

Gold futures traded in a narrowly bullish range during the Asian session to see their rebound to a second session in four sessions from its lowest since May 2, defying the rise of the US dollar index for the eighth session in ten sessions from the lowest since 18 of forgetfulness / According to the inverse relationship between them on the eve of developments and economic data expected Friday by the US economy.

At 03:44 am GMT, gold futures for June delivery rose 0.05% to currently trade at $ 1,283.70 per ounce from the opening at $ 1,283.20 an ounce, while the US dollar index rose 0.03% to 97.87 compared to the opening at 97.83. .

Investors are currently waiting for the US economy to release the Durable Goods Orders, which account for almost half of consumer spending, which accounts for more than two-thirds of US GDP, which could reflect a 2.0% decline versus 2.6% in March. The core reading of the same index shows a slowdown in growth to 0.1% versus 0.3% in March.

This came hours after the minutes of the Federal Open Market Committee meeting held at the end of April and early May, which touched on the Fed's monetary policy makers agreeing to keep interest rates between 2.25% and 2.50% In reducing the reduction of bond buybacks before freezing by September, as well as continuing the policy of patience until further notice.

On the other hand, we have followed yesterday, US Secretary of State Mike Pompeo said that the Chinese telecommunications giant Huawei Technologies is lying about its relations with the government of its own country. In contrast, a spokesman for the Ministry of Commerce that Washington should correct its erroneous behavior if it wishes to continue trade negotiations with Beijing To put an end to the trade war between the world's two largest economies, saying the importance of the talks should be based on mutual respect.

On the other hand, we have continued with the beginning of this week announced the Russian Ministry of Finance that the production of Russia (the third largest gold producer globally) of gold in the first three months of this year rose to 58.12 metric tons compared to 51.61 in the same period last year 2018, amid According to the ministry, production during the first quarter of the year included 45.95 metric tons of gold extracted from mines compared to 39.78 in the first quarter of the previous year.

Technical Analysis

The price of gold showed positive trading yesterday, breaking the resistance of the bearish correction and stabilizing above it, pushing the price for potential gains during the coming sessions, on its way to test the level of 1302.60 initially.

Therefore, the bullish trend is expected for today, provided stability above 1275.30, noting that the breach of the target level will extend the bullish wave to reach levels of 1320.00 and then 1346.70.

The trading range for today is among the key support at 1275.00 and resistance at 1302.60.

The general trend for today is bullish.