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Gold Analysis 16.05.2019

Gold futures traded in a tight range slipping into the Asian session to see their rebound for the third straight session since April 11, negating the negative stability of the US dollar index according to the inverse relationship between them on the eve of developments and economic data expected on Thursday from Ahead of the US economy, the world's largest economy.   

Gold futures for June delivery fell 0.07% to currently trade at $ 1,296.80 per ounce, showing a five-week rally from the opening at $ 1,297.70 an ounce, while the dollar index 0.01% to 97.53 compared to the opening at 97.54.   

Investors are currently waiting for the US economy to release the May 11 Jobless Claims reading, which may reflect a decline of 8K to 220K versus 228K in the previous week's reading. For the week ending on the fourth of this month decreased by 4 thousand applications to 1,680 thousand applications against 1,684 thousand applications. 

This is in conjunction with the disclosure of housing market data and the reading of the Construction Starts Index and Construction Permit, which may reflect an increase during April. Building permits are expected to rise 1.4% to 1,287 thousand versus 1.7% In March. Existing homes may also rise 6.2% to 1,209,000 versus 0.3% at 1,139,000.   

Markets also look to the world's largest industrial nation to see the Philadelphia Industrial Average read out, which could reflect a widening of 10.0 versus 8.5 in April, and the upcoming talk by Federal Reserve Vice President and Federal Open Market Committee member Ellen Bernard about expectations For economic and monetary policy at the annual symposium of the National Association of Taxation in Washington.   

Otherwise, we went on Wednesday, Chinese President Xi Jinping said the importance of the countries to treat each other equitably, adding that the world situation is unstable and controlled by uncertainty, adding that they call on nations to open their markets and work to support international trade, and came Hours after China's foreign minister said it was the United States that described the trade dispute with his country as a trade war.   

The Chinese foreign minister noted that China's actions are purely self-defense, adding that if the United States does not want to trade with China, other countries will close the gap, adding that there will be an upsurge in trade disputes over the country's domestic economy. , But can be overcome in the affirmation of confidence in the economic prospects of Beijing. 

He also expressed Beijing's hopes that Washington would stop using national security as an excuse to suppress Chinese companies. He said his country urges America to create a fair environment for Chinese companies, following the report on US President Trump's intention to sign a ban on Huawei. Trump yesterday signed an executive order that could prevent Chinese telecoms companies Huawei and ZTEE from selling their equipment in America later.   

In contrast, US Treasury Secretary Stephen Manuchen noted during a testimony before the US Senate that trade negotiations with China were good until China recently retreated from its trade commitments with his country, saying he was likely to go to China soon to continue trade talks, That his country is close to reaching an agreement with Canada and Mexico on tariffs.   

US President Trump said on Tuesday that trade talks with China had not collapsed, and the Chinese Foreign Ministry spokesman said Beijing and Washington agreed to continue trade negotiations after China announced on Monday its intention to increase import duties on its imports. With US goods estimated at $ 60 billion from 10% to 25% by early June.   

China's decision at the beginning of the week highlighted the escalating trade war between the United States and the United States, which last week lifted tariffs on Chinese goods valued at $ 200 billion, from 10 percent to 25 percent, bringing China's customs duties to 25 percent, About $ 250 billion, amid a threat by the administration of US President Trump to impose customs duties 25% on other Chinese goods estimated at $ 325 billion soon.

The price of gold continues to fluctuate in a sideways path and is still limited between the 1302.60 resistance and the 1286.00 support, waiting for one of these levels to break more precisely to determine the next direction, which continues to neutralize us so far.   

The negativity between SMA 50 and Stochastic negativity presents another reason for neutrality, noting that the break of the mentioned support will put the price under negative pressure with targets starting at 1275.30 and extending to the 50% Fibonacci level at 1253.20 while breaching the resistance will lead the price for additional gains up to 1320.00 then 1346.70 in the near term.   

The trading range for today is among the support at 1285.00 and resistance at 1315.00   

The expected general trend today: Depends on the levels mentioned in the reportd today: Depends on the levels mentioned in the report 


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