Gold prices rebounded as the dollar index fell for the third day in a row. Following Jerome Powell's speech to the US Congress on Tuesday.
Today, we are looking at the second section of Powell's testimony before the Monetary Policy Committee.
Gold opened today with a slight downward movement as it opened at $ 1328.33 per ounce, reaching a high of $ 1329.45 per ounce and a low of 1327.43.
From the US economy, we are looking for the release of the housing market data with the release of the Pending Home Sales Index which may give an improvement at 0.8% against the previous value of -0.2%. In conjunction with the second section of Powell's testimony.
In his testimony to the Congressional Senate yesterday, Powell stressed that the US economy is healthy, but the trade dispute between Washington and Beijing, weak inflation and volatility in financial markets may lead to slower growth this year.
"Powell added that these factors are what prompted the Central Bank to adopt a policy of patience and patience in raising interest rates in the coming period
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 rose at the end of yesterday's session after reaching 1322.94 support as it rebounded and reached resistance at 1329.78
Trades are above the moving averages 7-20 and near the moving average 50 which is resistance to the price near the level of 1329.25, which is at 38.2% Fibonacci retracement.
The Stochastic is moving in a bullish upward direction and constitutes a positive pressure on the price and may push it to retest the resistance 1329.79 and attempt to breach it.
The movement expected for today between 1322.94 support and resistance 1335.71
Support and resistance:
Support: 1322.94-1317.24-1314.04
Resistance: 1329.79-1335.71-1338.17