Gold prices moved in a narrow bullish range during the Asian session as the US dollar fell, ahead of economic developments and data expected Tuesday by the US economy, which includes the Fed's midterm testimony to the US Federal Reserve.
In the morning Asian session Gold prices dropped to trade currently at $ 1,328.00 an ounce after opening the day at $ 1,329.90 an ounce, amid the decline of the US dollar index 0.06% to levels of 96.33, showing a continuation of the rebound from the highest in two months compared to the opening at 96.39.
From the US economy, we look forward we look forward to the release of the housing market data with the reading of the Construction Starts Index and Building Permits, which may give a low reading in December, where building permits are expected to show a 2.8% drop to 1,290K versus a rise of 5.00% at 1,328. A may also show a reading of 0.5% in 1,250 homes compared to a rise of 3.2% at 1,256 thousand homes.
Ahead of the home price index reading, which could reflect slowing growth to 0.3% from 0.4% in November, and the upcoming event today, Federal Reserve Governor Jerome Powell's semi-annual policy statement to the Senate Banking Committee, before completing his half- Annual meeting on Wednesday with his appearance before the Financial Services Committee in the House of Representatives.
Today, at a later date, we expect the consumer confidence reading for February to rise to 124.3 from 120.2 in January, with the reading of the Rachamond Industrial Index which may give a reading of 8 versus a contraction of 2 in January.
US President Donald Trump noted that a new trade deal could be signed with his Chinese counterpart, Xi Jinping, while the Chinese president, who is expected to meet with his US counterpart in Washington later this month, noted that trade differences between his country and America are fading, With the expectation that the talks in the final stage more difficult.
According to the World Gold Council, global central bank purchases of gold rose during the year 2018 to their highest level since 1967. Purchases rose to 651.5 metric tons, up 74% from 2017 at 375 metric tons, Of the countries to buy the yellow metal topped by Russia by 274 metric tons, which overtook China, the largest consumer of metals globally and inspire both Poland and Kazakhstan.
Technical analysis:
Gold continues to fluctuate around the 1328.32 resistance level with pressure from the moving average. Where the moving average 50 moves below the price forming support near the 1325.70 level while the moving average 20 represents resistance to the price at 1329.25.
Stochastic is in a sideways path after losing the bullish momentum, which negatively reflected the price and pushed it to further decline and test the support level at 1322.94.
In general, we are on a sideways trend that tends to fall if 1324.2 is breached at 50% Fibonacci retracement
Support and resistance:
Support: 1322.94-1317.24-1314.04
Resistance: 1328.32-1338.70
The general trend of the movement: A primary side-road that the movement between the resistance and support sides shown in the picture