Daily Analysis of Gold 28-11-2018

Gold futures traded in a narrowly bullish range during the Asian session to see their rebound to its second lowest session since Nov. 15, as the US dollar index rose for the fifth session in seven sessions from its lowest since the 7th of this month according to the inverse relationship On the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world.

Gold futures for February delivery rose 0.10% to currently trade at $ 1,221.10 an ounce, showing a 2-week low from the opening at $ 1,219.90 per ounce. % To 97.38, showing a three-week retracement from the opening at 97.37.

Investors are currently looking for the US economy to reveal the second reading of GDP, which may reflect the widest economy in the world 3.6% in the third quarter compared with the previous reading of 3.5%, while the second reading of GDP may show the stability of growth at 1.7%, unchanged from the previous reading.

This is in line with the release of the Trade Balance of Goods Index, which may reflect a widening deficit to $ 76.7 billion from $ 76.0 billion last September and the Wholesale Inventories Index, which could show growth accelerating to 0.5% from 0.4% And before we see the reading of the Richmond Industrial Index, which may reflect a widening to 16 versus 15 last October.

In conjunction with the release of housing data, which could reflect a 4.0% rise in new home sales to about 575K versus a 5.5% decline in about 553K in September, to the expected talk of Federal Reserve Governor Jerome Powell at the New York Economic Club Under the title "Federal Reserve Framework for Financial Stability Control".

Technical Analysis

Gold broke the support level 1221.1 and reached the next support level 1211 and is currently trading around this level.

The price of gold is under negative pressure now to approach the pivotal support 1208.40, and the price needs to stabilize above this level to keep the upside move over the intraday basis as breaching it will cause the loss to reach 1180.00 in the near term while the positive target of the bullish wave is expected at 1238.30.

Moving Price, the moving averages are pushing the price lower.

The Stochastic is floating near the oversold area in a sign of a low price.

Support and resistance:

Support: 1211.40-1208.60-1200.00-1195.9

Resistance: 1221.00-1227.5-1232.40-1238.30

Author: Maher Maarouf