Gold Analysis 29.11.2018

Gold futures traded in a tight range sloping upward during the Asian session to see their rebound to its second lowest session since November 15 as the US dollar index fell for the second consecutive session from its highest since 13 this month according to the inverse relationship between them On the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world.

Gold futures for February delivery rose 0.01% to currently trade at $ 1,229.90 an ounce, showing a two-week drop from the opening at $ 1,229.80 per ounce, amid a drop in the US $ 0.03 index. % To 96.76 with a rebound from the top in two weeks compared to the opening at 96.79.

Investors are currently looking for the US economy to reveal spending and personal income data that may reflect a stable personal spending growth of 0.4%, unchanged from last September, and personal income growth accelerated to 0.4% from 0.2% in September, While the reading of the Personal Consumption Expenditures (PPI) indicator may show a 0.2% growth rate unchanged from September.

This comes in conjunction with the reading of the index of requests for aid for the week ending on 24 of this month, which may reflect a decrease of 3 thousand requests to 221 thousand requests in the previous weekly reading, while the reading of the index of continuing claims for the week ending on 17 of this month, 3 thousand requests to 1,671 thousand applications against 1,668 thousand applications in the previous weekly reading.

The markets are also looking for data on the housing market, which may reflect a faster growth of new home sales to 0.8% versus 0.5% in September, while the same year's index may show a contraction to 2.8% from 3.4% in September's annual reading, Before we see the Federal Reserve issued the minutes of the Federal Open Market Committee meeting held on the seventh and eighth of this month in Washington.

This came hours after Federal Reserve Governor Jerome Powell said Wednesday at the New York State Economic Center, under the headline "Federal Reserve Framework for Financial Stability Control", that the federal funds' interest is "slightly lower" than neutrality, Markets as a possible moderation in the pace of tightening monetary policy by monetary policy makers at the Fed.

In another context, the markets are also looking forward to what will result from the expected meeting of President Donald Trump and Chinese President Shi Jinping on the sidelines of the G20 summit, which will begin in Argentina on Friday and continue over the weekend, amid investors hope to reach the leaders of the world's two largest economists A trade deal and a trade protectionism between Washington and Beijing that threatens a trade war.

Technical analysis:

The support level stood at 1211.4 and the price could not be braked it after testing it for the second time in two days and rebounding towards resistance level 1227.50

Therefore, the price of gold is rising significantly above and above the SMA 50, which supports the continuation of the scenario of the expected bullish trend for the coming period, which depends on stability above 1208.40, while our next main target is at 1238.30.

The Stochastic is heading towards the overbought area in a bullish sign.

Support and resistance:

Support: 1221.1-1211.4-1208.60-1200.00-1195.9

Resistance: -1227.5-1232.40-1238.30