Gold Analysis 03.12.2018

Gold futures rose during the Asian session to witness the highest since November 7 amid the decline of the dollar index for the third session in four sessions of the highest since 13 of last month, according to the inverse relationship between them on the eve of developments and economic data expected on Monday from Ahead of the US economy, the largest economy in the world, including the FOMC meeting in New York.

Gold futures for February delivery rose 0.37% to currently trade at $ 1,230.50 per ounce, the highest in four weeks compared to the opening at $ 1.227.80 per ounce, amid the decline of the US dollar index to 0.33% 96.95 has been shown to resume its bounce from the top in three weeks compared to the opening at 97.13.

Investors are now eyeing what Federal Reserve Deputy Governor Richard Clareda will say in an interview on Bloomberg News Agency radio and television, ahead of Federal Reserve Vice President Randall Quarles on the economic outlook and monetary policy at the Council on Foreign Relations in New York.

Before another Federal Open Market Committee member, Federal Reserve Bank of New York Chairman John Williams, took stock of the opening remarks at the US Treasury Bank's Structural Development Conference hosted by the Bank of New York, leading to the final reading of Markit's PMI by month Which may reflect the widening stability at 55.4 and 55.4 in October.

In the same context, the index of the Industrial Supply Institute (ISI) for the past month may reflect a contraction of 57.5 versus 57.7 in October, and the index itself may show a price index of 70.1 versus 71.6, Which could reflect a 0.4% rise versus stability at zero levels in September.

To Federal Reserve Vice Governor Lyle Bernhard at the Structural Development Conference of the US Treasury, just hours before Fed Chairman Jerome Powell told the Joint Economic Committee of Congress on Wednesday about the economic outlook in Washington. The economy and rural America in the annual event of the Housing Assistance Council also in Washington.

In another context, we followed on Sunday the White House issued a statement on dinner leaders at the G20 summit in the Argentine capital Buenos Aires, explained that both US President Donald Trump and his Chinese counterpart Xi Jinping discussed a range of controversial issues, including the ongoing trade dispute Between Washington and Washington, which foreshadows a trade war between the world's biggest economists.

"President Trump agreed that on Jan. 1, 2019 tariffs on Chinese products estimated at $ 200 billion will be left at a rate of 10 per cent and will not be raised to 25 per cent on that date," the White House statement said yesterday. US and Chinese officials will continue to negotiate on many of the issues of the existing trade dispute, particularly technology transfer and intellectual property, as well as agriculture.

Trump and his counterpart, Xi Jinping, for a three-month trade hiatus during which US and Chinese officials will continue their trade negotiations have weighed heavily on the performance of the US dollar recently adopted by investors as a security haven. The greenback lost relative appeal last week due to market pricing for a speech Powell as a possible moderation in the pace of tightening monetary policy of the Federal Reserve.

The minutes of the Federal Open Market Committee meeting held on November 7 and 8, which was unveiled by the Federal Reserve on Thursday, indicated that there was a close increase in federal funds rates and that monetary policy makers in the Federal Reserve Have discussed the timing of a future short-term interest rate increase.

Technical analysis:

Gold opened this week with a gap at 1224.87 compared to last week's closing 1222.24 as succeeded to close the gap and rebounded to complete the intraday bullish move.

Gold is trading above the moving averages which formed a positive pressure on the price and prevented it from falling further when it tried to close the gap and is likely to push it higher.

As for the Stochastic, it is approaching the area of ​​saturation of the purchase in a positive sign of the high price of gold.

The trading range between support 1221. and resistance 1232.41.

Support and resistance:

Support: 1221.0-1211.4-1208.6;

Resistance: 1227.57-1232.40-1238.3.

The overall trend is bullish.