Gold Analysis 1.08.2019

Gold futures fluctuated in a tight range slipping into the Asian session to see their second straight session rebound since July 19, when it tested its highest since May 10, 2013 as the US dollar rose higher. Since 15 May 2017 according to the inverse relationship between them on the eve of developments and economic data expected Thursday from the US economy, the largest economy in the world.

Gold futures for December delivery fell 0.27% to currently trade at $ 1,421.70 an ounce from the opening at $ 1,425.60 an ounce. The contracts started trading on a bearish price gap after concluding Yesterday's trading at $ 1,437.80 an ounce, while the US dollar index rose 0.25% to 98.84 compared to the opening at 98.60.

Investors are currently looking for the US economy to read the Jobless Claims reading for the week ending July 27th, which could reflect a 6K increase to 212K before we see the final reading of Markit Manufacturing PMI The stability of the widening at 50.0 may reflect little change from last month's preliminary reading and from 50.6 in June.

Leading to the disclosure by the largest industrialized country of the index of the Industrial Supply Institute index, which may show a widening to 52.0 compared to 51.7 in June, while the same index may indicate the price index contraction contraction to 49.1 compared to 47.9, in conjunction with The construction spending index, which reflects a rise of 0.5% versus 0.8%.

This came hours after the Federal Open Market Committee decided to cut the federal funds rate by 25 basis points for the first time in more than a decade, which was expected in the markets, Federal Reserve Governor Jerome Powell during his press conference after the expiration The fact that the decision was made in view of "global developments" and "inflation" is the subject of the meeting of the Federal Commission.

In the same context, Federal Reserve Governor Paul said that the committee's decision at the July 30-31 meeting to cut interest rates to between 2.00% and 2.25% "was not the beginning of a long series of interest rate cuts." To global risk insurance and that it is not necessarily one-time only, reflecting that the course of monetary policy in the future will depend on the impact of global economic data on the performance of the economy.

In the same context, the White House also announced yesterday that the two sides had discussed many issues, including the United States and China, Such as the transfer of forced technology and intellectual property rights as well as non-tariff and agricultural services and barriers.

Technical Analysis

The price of gold hit a strong negative yesterday to attack the level of 1410.90 and try to break it, where it starts today further decline to move below this level, which signals the direction of the price for further correction, but we need to monitor the daily closing for the level mentioned to confirm the next destination more accurately .

Therefore, we prefer to stop the neutrality temporarily until the price confirms the position for the level of 1410.90, noting that the stability below it will push the price to move towards 1384.95 as a corrective post, while trading above again will reactivate the positive scenario, which is located next target at 1450.00.

The trading range for today is among the support at 1395.00 and resistance at 1435.00

The expected general trend for today: neutral.