Gold Analysis 29-05-2019

Gold futures traded in a tight range slipping into the Asian session to see their second straight session retreat since May 17, as the dollar index fell for a third session in five sessions from its highest since May 16, 2017 according to the opposite relationship between them on the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world.

At 03:57 GMT Gold futures for delivery of 15 August next 0.01% to trade currently at $ 1,284.20 an ounce, showing a continuation of the rebound from the top in two weeks compared to the opening at $ 1.284.30 per ounce, while the decline of the US dollar index 0.01 % To 97.92, resuming its recovery from the upside in two years compared to the opening at 97.93.

Investors in the US economy are eyeing the release of the Chicago Purchasing Managers Index, which may reflect a 6 to 3 gain in April, just hours before the second reading of Q1 GDP, which may reflect the largest economy in the world. The world's 3.1% compared to the previous preliminary reading which indicated growth of 3.2% during the last quarter quarter.

On the other hand, we followed the Russian Ministry of Finance announced last week 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, The ministry said that production during the first quarter last included 45.95 metric tons of gold extracted from mines compared to about 39.78 in the first quarter of the previous year.

Technical Analysis

The price of gold offered negative trading yesterday to test the pivotal support at 1275.30, and as long as the price is above this level, our bullish outlook will remain effective over the intraday basis supported by the emergence of a positive cross signal through stochastic, waiting for a move towards 1302.60 as the next major station.

On the other hand, keep in mind that breaking 1275.30 and stability below it will stop the positive scenario and put the price under negative pressure starting with its key targets at 1253.20.

The trading range for today is among the support at 1270.00 and resistance at 1300.00

The general trend for today is bullish