Gold Analysis 09.11.2018

Gold futures fell during the Asian session to see their lowest since early November amid the rebound of the dollar index for the second session of its lowest since October 22 according to the inverse relationship between them following developments and economic data that followed the Chinese economy, the largest importer of metals On the eve of economic data expected Friday by the US economy, the largest economy in the world and the expected talk of federal committee member Randall Quarles about the financial organization in Washington.

Gold futures for December delivery fell 0.48% to currently trade at $ 1,219.20 per ounce, the lowest level in more than a week compared to the opening at $ 1,225.10 per ounce, amid the rise of the US dollar index of 0.05 % To 96.77, the highest level since the beginning of this month compared to the opening at 96.72.

We have followed the Chinese economy, the world's second-largest economy, to reveal the annual reading of the consumer price index, which showed a stable growth rate of 2.5%, unchanged from the previous September reading, in line with expectations, while the annual reading of PPI The slowdown in growth to 3.3% is also consistent with expectations compared to 3.6% in the previous annual reading for the month of September.

On the other hand, investors are looking for the US economy to release the Producer Price Index (PPI), a preliminary index of inflationary pressures that could reflect a 0.2% growth in stability, unchanged from September, while the annual reading of the same index may show slower growth To 2.5% from 2.6% in the previous annual reading for September.

In the same context, the core reading of the PPI may show a 0.2% growth rate unchanged from September, while the Core Annual Report itself may show a slowdown in growth to 2.3% versus 2.5% before we see The final reading of the Wholesale Inventories Index, which may reflect a stability of 0.3%, is largely unchanged from the previous reading for September and 1.0% in August.

Leading to the release of the University of Michigan's consumer confidence index, which may reflect a narrowing to 98.0 versus 98.6 in October, hours after the FOMC meeting ended, during which monetary policy makers agreed to stay on benchmark interest rates Short term at between 2.00% and 2.25%, which was expected by market analysts.

Technical Analysis:

The price of gold is showing further bearishness and is gradually approaching our main target at 1208.40. The bearish trend will continue to be effective in the coming sessions, noting that breaking the mentioned level will extend the downside wave to reach 1198.00 as a next stop.

Stochastic is providing a negative signal that supports the possibility of further decline which requires stability to remain below 1238.30

Waiting for the success arrange of the sma7-sma20and sma50

The trading range for today is expected among the support at 1200.00 and the resistance at 1230.00

The general trend for today is bearish