The price of gold is fluctuating in a narrow range that tends to rise during the Asian session, despite the rise in the US dollar index because the relationship between them is reversed before the release of economic data on the European economy and the US economy.
In the Asian session, gold futures for April delivery fell 0.01% to currently trade at $ 1,287.10 an ounce, showing a nine-month high of $ 1.287.30 per ounce, while the dollar index rose 0.05% to 96.88. Explaining that he resumed his bounce from the lowest level in a month compared to the opening at 96.83.
We expect today the results and the ECB meeting which is expected to hold interest rates at current zero levels and stabilize the marginal lending rate at 0.25% while keeping the interest rate on deposits negative -0.40% in the shadow of the performance of the Eurozone economies. Before we see the talk of ECB President Mario Draghi at the ECB press conference.
And from the US economy we expect the final reading of the productivity index and the cost of one work, which may show a slowdown in productivity growth to 1.5% compared to the preliminary reading of the fourth quarter and the previous quarter's reading at 0.9%, and accelerated cost growth to 0.9% compared to the previous reading and the previous reading of the quarter Third at 0.9%.
This comes in conjunction with the reading of the index of claims for the week ending on March 2, which may reflect stability of 225 thousand requests, unchanged from the previous weekly reading, before we see the talk of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve, About economic outlook and monetary policy at Princeton University, New Jersey.
Otherwise, markets are also looking at developments in trade talks between the world's top economists on the eve of the upcoming meeting of US President Donald Trump and his Chinese counterpart Xi Jinping later this month amid investors' hopes of a trade deal to avoid a trade war. That the statements of officials from both sides were positive about the progress of the negotiations, but to reach a full agreement and an agreement is not yet.
Technical Analysis
Gold is fluctuating around the 1285.08 support level for the third day in a row under heavy pressure trying to push it lower.
Gold is moving below the moving averages that started to form the bearish order, where the moving average 7 intersected with the 50 SMA. The 20 SMA started moving down.
The stochastic in the oversold area moves sideways. It should be noted that the exit of the index from this region will push the price upwards.
The trading range for today is among the key support at 1268.20 and resistance at 1301.60
The general trend of the movement is bearish, provided that the trading remains below 1301.60 resistance