Gold Analysis 05.12.2018

Gold futures rallied during the US session, the highest since July 13, as the US dollar index fell for the fourth session in five sessions from its highest since November 13, according to the inverse relationship between them after the talk of the Governor of the Bank Federal Reserve Chairman Jerome Powell, a member of the Federal Committee for the Elle Bernard in Washington and the expected talk of Federal Committee member and New York Bank Chairman John Williams in New York.

Gold futures for February delivery rose 0.39%, the highest level in five months compared to the opening at $ 1,239.60 an ounce amid the decline of the US dollar index of 0.29% to 96.76 levels, explaining the lowest Since the 22nd of last month compared to the opening at 97.04.

The testimony of Federal Reserve Governor Jerome Powell to the Joint Economic Committee for Congress, which was due to be seen on Wednesday on the economic outlook, was postponed as the 45th President of the United States, Donald Trump, approved on December 5 this year a holiday Official in the United States to pay homage to former US President George HW Bush. W.

Paul's latest talk about rural America and the economy at the annual Housing Assistance Council meeting in Washington is expected to be held ahead of last week's US labor market data, which could reflect a stable unemployment rate of 3.7% for the third month in a row, Average hourly income, while reading the change in the employment of sectors other than agriculture may reflect a slower pace of job creation.

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, which reported that US President Donald Trump and his Chinese counterpart Xi Jinping discussed a range of controversial issues including the trade dispute Between Washington and Washington, which foreshadows a trade war between the world's biggest economists.

The White House statement also states that "President Trump agreed that on 1 January 2019 tariffs on Chinese products valued at $ 200 billion would be left at a rate of 10 per cent and would not be raised to 25 per cent on that date" and that within 90 days 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, Shi Jinping, for a three-month trade truce 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 has recently lost its attractiveness as a result of market pricing for Powell's speech Last week 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.

Gold holdings at the SBDR Gold Trust Fund, the world's largest gold-backed fund, fell by 3.53 metric tons to 761.74 metric tons on Monday. Gold prices last month made their second monthly gain, respectively, after ending their longest losing streak in October since late 1996.

Technical analysis:

Gold failed to close daily above the resistance level 1238.4 and is currently trading near the previous resistance level 1232.00.

Gold is trading above the moving averages, where the SMA 7. near of the support levels at 1227.40 and it is above the current gold price (1235.5), which Forms a kind of instability in the bullish movement so gold is likely to make a correction towards SMA 7 for more stability in the bullish trend.

Stability above 1228.00 is required to conforming  on the upside and achieve the awaited targets around 1238.00 again and then 1249.00.

The trading range for today is among the support at 1227.40 and resistance at 1249.00.

Support and resistance:

Support: 1227.40-1221.90-1211.87;

Resistance: 1238.40-1249.00-1257.00-1262.8.

General Trading Course: bullish.