Gold Analysis 08.11.2018

The price of gold futures fell during the Asian session amid the rise of the dollar index, showing its rebound to the second session of its lowest since October 22, according to the inverse relationship between them following the developments and economic data that followed Thursday the Chinese economy, the largest importer of metals globally and on the threshold of data Economic outlook on Thursday by the US economy, the world's largest economy, coinciding with the FOMC meeting in Washington.

Gold futures for December delivery fell 0.37% to currently trade at $ 1,224.10 per ounce compared to the opening at $ 1,228.70 an ounce, with the dollar index rising 0.26% to 96.24. From its lowest in two weeks compared to the opening at 96.00.

We followed the Chinese economy, the second largest economy in the world and second largest industrialized nation after the United States disclosed the reading of the trade balance index, which showed a surplus of 234 billion yuan, or $ 34.0 billion, compared to 213 billion yuan, or $ 31.7 billion. Last September, contrary to expectations that the surplus shrank to 209 billion yuan, or $ 31.3 billion.

On the other hand, investors are looking for the US economy to reveal the reading of the index of claims for the week ending on the third of this month, which may reflect stability in 214 thousand requests, unchanged from the previous weekly reading, while the reading of the index of continuing claims for the week in the past 27 From last month, up by 4 thousand applications to 1,635 thousand applications compared to 1,631 thousand applications in the previous weekly reading.

This coincides with the FOMC meeting on 7 and 8 November, in which monetary policy makers are expected to keep short-term benchmark interest rates at between 2.00% and 2.25% following the interest rate hike On federal funds by 25 basis points for the third time this year at the previous meeting of the Federal Commission.

Technical Analysis:

The price of gold is showing negative negative trading to settle below the SMA 7- SMA 20 and SMA 50, so that the downside scenario remains intact until the 1208.40 level is tested mainly, noting that breaking this level will extend the downside wave to 1198.00 directly.

Stability below 1238.30 is important for achieving the suggested targets, as breaching it will lead the price to test the next correction level at 1262.51 directly.

The trading range for today is among the support at 1208.00 and resistance at 1235.00

Support and resistance:

Resistance: 1227.6-1233.80-1237.80

Support: 1222.60-1214.50-1208.60

The general trend for today is bearish

Trading Disc: Sell below 1223.80 and targets 1222.6-1214.50 and stop loss above 1230.00