Gold moved within a narrow range that is likely to retreat within the Asian session to follow the rebound from the February 19th high for the sixth session in a row, with the US dollar index rising for a second day from its February 5 low. Following economic data from China as economic data awaited the US economy on Thursday.
Today morning in the Asian session futures gold prices fell 0.11% to trade at 1,320.20 $ per ounce are described respectively rebound from its highest in ten months, compared with the opening at 1,321.70 $ per ounce, amid the US dollar index rose 0.01% to 96.10 levels, explaining the succession of recovery from the minimum In three weeks compared to the opening at 96.09.
China, the world's second-largest economy and the second-largest industrialized nation, released the Industrial and Service Purchasing Managers' Indexes by the China Logistics and Purchasing Federation (CFLP), which showed contraction in the industrial sector to 49.2 from January and 49.5, And the service sector shrank to 54.3 versus 54.7, worse than expected at 54.5.
On the other hand, markets are currently looking for the US economy, revealing the preliminary reading of GDP, which may reflect the shrinking of the largest economy in the world to 2.6% in the fourth quarter compared to 3.4% in the third quarter, and may show the preliminary reading of GDP measured prices for quarterly quarter last slowing growth to 1.7% versus 1.8% in the third quarter.
This comes in conjunction with the reading of the index of claims for the week of February 23, which may reflect a rise of 5 thousand applications to 221 thousand applications compared to 216 thousand applications in the previous weekly reading, before we see the disclosure of the Chicago Purchasing Managers Index May reflect a widening to 58.1 versus 56.7 in January.
Technical analysis:
Gold continues its bearish movement. yesterday he could break the support at 1322.94-1319.06. approaching the minimum of the up channel that has been moving in since 14 November.
The moving averages push the price lower as it moves above the price in a bearish order, thus increasing the negative pressure on the price to test the minimum of the up channel.
Stochastic has reached the oversold area and is moving sideways at the level of 20, therefore, it is a sign of weakness in the bearish movement of the price and loss of momentum to continue to fall, so any bullish cross between the indicator lines will make us see a rise in gold prices
The expected movement for the day between support 1314.04 and resistance 1322.94
Support and resistance:
Support: 1314.04-1306.04-1301.75
Resistance: 1319.06-1322.94-1329.25