Gold Analysis 07.12.2018

Gold futures rose during the American session to witness the highest since July 11 amid the rebound of the dollar index from the highest since the end of November last according to the inverse relationship between them following developments and economic data followed Thursday by the US economy largest the world economy and on the brink of the forthcoming talk of FOMC member and Atlanta Fed Chairman Rafael Postk in Atlanta.

Gold futures rose to currently trade at $ 1239.66 per ounce, after reaching a five-month high of $ 1,244.30 per ounce. The US dollar index fell 0.41% to 96.67, reversing the week's high against the opening at 97.07.

Federal Reserve Board member Randall Quarls followed the opening remarks at the Stanford University Economic Seminar in California before we saw the release of preliminary data for the US labor market with the reading of the Change in Private Sector Index, which showed a slowdown in job creation to around 179,000 jobs Adding to 225,000 jobs added last October, worse than the expected 195,000 added jobs.

In parallel with the release of the trade balance index, which showed a widening deficit to $ 55.5 billion compared to $ 54.6 billion last September, worse than expectations of a widening deficit to $ 55.2 billion, showed a reading of the index of claims for the week before the beginning of the month decrease by 4 thousand to 231 thousand applications compared to 235 thousand applications in the previous weekly reading, contrary to expectations at 226 thousand applications.

On the 24th of last month, the ongoing claims index showed a drop of 74K to 1,631K, exceeding expectations of 1,690K. This came before we saw the final reading of Markit Institute's Index of Service Providers Which expanded to 54.7 from the previous reading and expectations at 54.4 and from 54.8 in October.

We also followed the disclosure of the Institute of Supply Service Index, which showed a widening to 60.7 compared to 60.3 in October, contrary to expectations that indicated the contraction of breadth to 59.1, and we would like to point out that the service supply is important in the fact that the service sector in the United States represents More than two-thirds of US GDP.

This came in conjunction with the factory demand index, which showed a 2.1% drop from 0.2% last September, worse than expectations for a 1.9% decline. This comes on the heels of the expected talk of federal commissioner and Federal Reserve Chairman Rafael Postk about Local economy in Georgia's economic forecast series in Atlanta.

Gold holdings at SBDR Gold Trust, the world's largest gold-backed fund, stabilized on Wednesday for a second consecutive day at 761.74 metric tons. Gold prices last month made their second monthly gain, respectively, after ending their longest losing streak in October since late 1996.

Technical analysis:

Gold is starting a new high today to move above the 1238.30 level, but closed yesterday's candlestick below this level as well, keeping the chances for the continuation of the expected bearish scenario over the intraday basis, waiting for 1208.40 targeting mainly.

The break of 1230.00 will facilitate the price action to achieve the mentioned target, while the price stability above 1238.30 will stop the negative scenario and lead the price to move towards 1262.51 as the next major station.

No change in the moving averages. the SMA 7 approaches the price to give it more stability while the SMA 20 is floating near support area 1222.0.

Stochastic moves in the overbought area, waiting for an intersection between the indicator lines and out of the area to begin the correction process

The trading range for today is among the support at 1220.00 and resistance at 1250.00

Support and resistance:

Support: 1227.39-1221.89-1211.98

Resistance: 1238.38-1251.32-1257.00-1262.8

The general trend for today is bearish