Gold Analysis 07.10.2021

Gold futures fluctuated in a narrow range tilted to the downside during the Asian session to reflect the resumption of its rebound from the top since September 23 for the second session in four sessions, amid the positive stability of the US dollar index, according to the inverse relationship between them on the cusp of developments and economic data expected today, Thursday from The US economy accepted the largest economy in the world and in light of the market pricing of its possible breakthrough regarding raising the US debt ceiling and optimism about the resumption of talks between Washington and Beijing.

At exactly 05:59 am GMT, gold futures contracts for December delivery fell 0.22% to trade at $1,759.90 an ounce, compared to the opening at $1,763.80 an ounce, knowing that the contracts started the session’s trading on an upward gap after it concluded yesterday’s trading. At $1,761.80 an ounce, with the dollar index rising 0.01% to 94.23 compared to the opening at 94.22.

Investors are currently awaiting by the US economy the release of the unemployment claims index for the last week on October 2, which may reflect a decrease of 12 thousand applications to 350 thousand applications, compared to 362,000 applications in the previous weekly reading. For the past week, on September 25, a decline of 22 thousand applications to 2.78 million applications, compared to 2,802 thousand applications.

This comes before we witness FOMC Member and New York Fed President John Williams deliver opening remarks at an online event hosted by the Central Bank Research Association and the New York Federal Reserve, all the way to the Fed revealing a consumer credit index reading that may reflect accelerating growth. It reached $17.4 billion, compared to $17.0 billion last July.

Technical Analysis

Gold price starts today’s trading with negativity, affected by the negative signals provided by the stochastic indicator, and we believe that the room is open to achieve more decline in the upcoming sessions, waiting to visit 1735.00 mainly, noting that breaking this level will extend the descending wave to reach 1692.00.

Therefore, we will continue to suggest the bearish trend on the intraday term with the price remaining below 1770.00, noting that breaking 1750.00 is required to facilitate the task of achieving the awaited negative targets.

The expected trading range for today is between the support 1735.00 and the resistance 1770.00

The forecast general trend for today: Bearish