Gold Analysis 04.09.2019

Gold futures fluctuated in a narrow range, tilted lower during the Asian session to see resumption of rebound from the highest since April 11, 2013, overlooking the decline of the US dollar index for the second consecutive session from the highest since May 12, 2017, according to the inverse relationship between them on the eve of developments and economic data expected on Wednesday by the US economy, the largest economy in the world, which includes the speech of members of the Federal Open Market Committee.

Gold futures for December delivery fell 0.28% to currently trade at $ 1,539.60 an ounce compared with the opening at $ 1549.84 an ounce, while the US dollar index fell 0.05% to 98.91 compared to the opening at 98.97.

Investors are now awaiting the US economy to release its trade balance reading, which may reflect a narrowing of the deficit to $ 54.2 billion from $ 55.2 billion in June, ahead of the FOMC and New York Federal Reserve Chairman's speech. Federalist John Williams at the Euromoney Conference in New York.

Later in the day, Federal Open Market Committee (FOMC) and St. Louis Federal Reserve Chairman James Pollard will deliver the opening speech along with Fed Governor and Federal Open Market Committee member Michelle Bowman at the event hosted by the St. Louis Federal Reserve Bank in St. Louis.

This comes before we see the release of the Beige Book report, which is important in that it is issued two weeks before the meeting of the Federal Open Market Committee, which is one of the pillars on which the monetary policy makers at the Federal Reserve Bank decisions and directions to support and stimulate the US economy, knowing that the meeting The next FOMC is scheduled to be held in Washington on September 17-18.

The Federal Open Market Committee (FOMC) and Chicago Fed Governor Charles Evans will deliver a keynote speech at a North American trade conference in Detroit, just hours before last month's labor market data and Fed Governor Jerome Powell delivered a speech titled “Economic Outlook”. And monetary policy "at an event hosted by the Swiss Institute of International Studies in Zurich.

Technical Analysis

The price of gold provided notable positive trading yesterday and attempts to breach the resistance of the descending corrective channel shown in the picture, which supports the chances of the continuation of the bullish trend in the intraday and short term, which is getting sustained support from SMA 50, waiting to test 1560.00 as the first target, with reminders that exceeding This level will push the price to 1600.00 as the next major stop.

Stability above 1531.75 is a prerequisite for the continuation of the expected rally, as a break would press the price to test the most important support at 1517.25 again before any new attempt to rise.

Expected trading range for today is between 1530.00 support and 1560.00 resistance

Expected trend for today: Bullish