All Monday, gold was trading in a very narrow price range, since there were no important economic and geopolitical news on the market that could have a strong influence on trading.
Today, the range continues, since the Asian trading session continued to experience a shortage of important news. With the beginning of the European trading session, the market should revive, as today the publication of economic indices from the ZEW Institute is expected.
In the US, a number of important events are also scheduled for today. First, the market will closely monitor the speeches of Fed Chairman Jerome Powell and FOMC members Rafael Bostic and Robert Kaplan. Perhaps the Fed officials will clarify the situation on further monetary policy. Fitch Ratings said yesterday that the regulator is likely to lower the interest rate in 2019 not as much as financial markets expect, which is a negative signal for gold.
Secondly, today reports on retail sales and industrial production will be released, which may significantly affect the future dynamics of the dollar and gold index, respectively. Experts expect the publication of weaker data than in the previous month.
On the graph for the day the picture has not changed. In medium-term trading range retains its relevance, with borders at the levels of 1383.00 and 1438.00. Since the price is kept above the level of 1405.00, the option with a price rising towards the upper border above the indicated price channel remains locally the priority.
Resistance Levels: 1425.00, 1438.00, 1445.00;
Support levels: 1405.00, 1383.00, 1360.00.
The main scenario - growth to 1438.00.
An alternative scenario - the breakdown of support at 1405.00 and a decline to 1383.00.
The market has established a neutral news background, which contributes to the development of side movement. In the framework of this outset we recommend considering long positions from the level 1405.00