Gold futures fluctuated in a tight range slipping towards the Asian session to see their rebound since June 15, negating the negative stability of the USD index near its lowest level in two weeks according to the inverse relationship between them on the eve of economic developments and data expected today Tuesday, which includes the vote of the British parliament for the third time on Britain's exit from the European Union and the launch of the meeting of the Federal Open Market Committee today and tomorrow Wednesday in Washington.
At 0337 GMT, gold futures for April delivery fell 0.04% to currently trade at $ 1,308.80 per ounce from the opening at $ 1,309.30 per ounce, while the US dollar index fell 0.01% to 95.74 compared to the opening at 95.75.
The markets are currently looking for the British parliament to vote on the British exit from the European Union and the opening of the Federal Open Market Committee meeting on Wednesday and Wednesday in Washington before the second round of trade talks between Washington and Beijing. Tomorrow Thursday to meet with US Trade Representative Leftizer and Treasury Secretary Stephen Menuchin.
Otherwise, at the weekend, the US Congressional Budget Office cut its forecast for the fiscal deficit of 2019 to a deficit of $ 897 billion compared to its previous forecast in April at a deficit of $ 981 billion, bringing the deficit ratio from GDP to 4.2 percent instead of 4.6 percent. With the Office reducing its growth forecast for 2019 to 2.3% from 2.4% and lowering its expectations for a partial closure of the federal government which could weigh up 0.1% on the fourth quarter of 2018 and 0.2% in the first quarter of 2019.
Technical Analysis
The price of gold is showing a quiet positive move on its way to resuming the expected bullish intraday direction, affected by the completion of a bullish flag pattern shown in the image, organized within the corrective ascending channel that bears the price to visit 1316.65 as the next key target.
Therefore, the bullish scenario will remain valid for the coming period supported by SMA 50, provided that the pair remains stable above 1286.70.
Stochastic Entry The buy saturation area supports the bullishness, but attention must be paid to an attempt to get out of it which will result in a correction, thus testing the support level 1293.60
The trading range for today is among the support at 1290.00 and resistance at 1316.65
Support and resistance:
Support: 1293.60-1.86.80-1275.70
Resistance: 1316.65-1321.65-1333.80
The general trend for today is bullish