Gold analysis 19.06.2019

Gold futures traded in a tight range slipping into the Asian session to see their rebound to a third session in four sessions since April 11, 2018 amid a positive stability of the US dollar index according to their inverse relationship after the United States and China resumed talks To discuss trade relations and to look forward to the outcome of the Federal Committee meeting and Federal Reserve Governor Jerome Powell's press conference later Wednesday.

Gold futures for August delivery fell 0.07% to currently trade at $ 1.347.80 per ounce from the opening at $ 1,350.40 an ounce, with the US dollar index rising 0.01% to 97.65 compared to the opening at 97.64.

"We will have a very good telephone conversation with the Chinese president. We will have a meeting next week in the G-20 in Japan," he said. "Our teams will start talks before our meeting," he said. Which boosted investors' hopes to resolve trade disputes between the world's two biggest economies and contain the trade war between them.

In another context, we also followed yesterday the ECB Governor Mario Draghi expressed the fact that the central bank's monetary policy industry is ready to adopt further stimulus if necessary, thus enhancing the chances for the ECB to expand monetary policy by next July's meeting In the shadow of inflationary pressures in the euro area, to stimulate the cycle of risk appetite in the markets.

"Another sign of American President Trump said," Mario Draghi just announced that more stimulus has come, which has led to the euro's immediate fall against the dollar, making it unfairly easy for them to compete against the United States, From this for years, along with China and others. "This coincided with the June 18-19 meeting of the Federal Open Market Committee in Washington.

Investors are eyeing the FOMC meeting, where interest rates are expected to remain between 2.25% and 2.50%, as markets look to reveal their expectations for growth, inflation and unemployment as well as the future interest rates for the three years Ahead of Fed Chairman Jerome Powell's upcoming press conference later in the day.

US Federal Reserve Governor Paul Powell has already said that the Federal Reserve does not know how and when trade tensions will be resolved, noting that the Federal Reserve is taking seriously inflationary pressures for an extended period that may affect inflation expectations later, The Federal Reserve is abandoning its policy of patience and cutting interest rates on federal funds in the coming period.

Technical Analysis

Gold showed positive trading yesterday and tried to breach the 1346.70 level but has not been able to hold above it until now. Stochastic is gaining positive momentum, awaiting the resumption of positive attempts and confirmation of the breach towards 1365.25 which represents our next target.

In general, we will continue to push the bullish trend in the coming sessions supported by SMA 50 unless the 1326.00 level is breached and stability below it.

The trading range for today is among the support at 1335.00 and resistance at 1360.00.

The general trend for today is bullish.