Gold started to fluctuate in a narrowly bearish range as gold rebounded to a sixth session within eight days of the February 19th high, in contrast to the US dollar index, which is up for the third session in a row. After Federal Reserve Governor Jerome Powell spoke in New York and on the eve of economic developments and data expected Friday by the US economy, the largest economy in the world.
At 03:57 am GMT, gold futures for April delivery fell 0.03% to currently trade at $ 1.314.30 per ounce, showing a 10-month rebound from the top as compared to the opening at $ 1.315.50 an ounce, The US dollar was down 0.04% to 96.26, showing a three-week bounce from the opening at 96.22.
We have followed Federal Reserve Governor Jerome Powell's speech entitled "Recent Economic Developments and Long-Term Challenges" at the New York Citizens' Budget Committee Dinner, just hours before the economic data released today by the world's largest economy, Read spending and personal income for the months of December and January.
Looking ahead to the final reading of the US Manufacturing PMI last month, which may reflect the stability of the widening at 53.7 vs. 54.9 in January, before the ISI manufacturing index, which may show a contraction of 55.6 vs. 56.6 in January , While the same price index may show a widening to 51.6 versus a contraction at 49.6.
This comes in conjunction with the release of the final reading of the University of Michigan consumer confidence index, which may reflect a widening to 95.8 from February's preliminary reading of 95.5 versus 91.2 in January, as well as consumer expectations of inflationary pressures for a year and five years. Investors are still looking at developments in the US-China trade negotiations.
Technical Analysis
Gold broke through the up channel (which has been trading since November 14) to continue the bearish intraday direction under pressure from the moving averages that are in a downward spiral above the price, thus forming negative pressure on the price to push it to the downside and test support levels.
The index also formed a negative pressure on the price through its bearish movement and its success in entering the oversold area with attention to any intersection between the lines of the index is a sign of weakness and the end of the downward movement formed by the price and a very high probability of a bounce up.
The bearish trend is likely as long as the pair is trading below 1314.04, while noting that a breach of 1319.26 then 1324.50 will stop the expected decline and lead the price back to the ascending channel again.
The trading range for today is among the support at 1300.00 and resistance at 1324.00
The general trend for today is bearish