Central banks announcements - the European Central Bank and the Federal Reserve - of their monetary policy did not support further gains for gold prices because they confirmed their announcements from previous meetings. The reaction of the yellow metal was to reach the level of 1310 dollars an ounce before settling around 1305 dollars at the time of writing awaiting for anything new. Stability of gold prices above $ 1,300 supports the bullish correction again.
The latest gains supported by the decline of the US dollar amid mixed results of US job numbers, which confirms that the US economy may see a slowdown as the trade war between the United States and China continues. This is in addition to the continuation of the Brixet crisis, especially with the expiration of the last extension period until the end of this week and the market anticipation of the EU summit and May to determine the outcome.
The general trend will remain bearish if it stabilizes below the psychological support level of $1300. In previous technical analysis, we noted that on the daily chart below that the formation of the head and shoulders is clear for the gold, which threatens new selling pressures. The dollar's strength has contributed to gold losses despite US economic growth slowing in the fourth quarter of 2018 more than expected.
The Federal Reserve Board announced, as expected, to leave interest rates unchanged. The US central bank's outlook has indicated that interest rates are likely to remain unchanged for the rest of 2019. They also announced that by September, it would not reduce its bond portfolio, a change designed to help keep long-term loan rates down. "It is time to be patient and wait and wait," Powell said, citing the global economic slowdown, not far from the United States and the continuation of trade wars.
Technically: Gold prices today if stabilized below $ 1300 will increase the bearish momentum and the nearest support levels will be 1284, 1275 and 1260 respectively, which support the strength of the bearish trend. On the upside, the nearest resistance levels are 1315, 1325 and 1337 respectively. We still prefer to buy gold from every bearish bounce.
In terms of economic data: the yellow metal will focus on the US dollar level. Gold will also be affected by investors' appetite for risk. Gold is one of the most important safe havens.
