Gold Analysis 28.08.2019

Gold futures fluctuated in a narrow range, tilted lower during the Asian session to witness the decline for the second session in three sessions from the highest since April 11, 2013 amid the rise of the US dollar index according to the inverse relationship between the lack of economic data on Wednesday by The US economy is the largest in the world.

At 03:16 am GMT, gold futures for December 15 rose 0.05% to trade at $ 1540.40 an ounce, compared with the opening at $ 1541.00 an ounce, after hitting a low of 1531.67. The US dollar index rose 0.07% to 98.07 compared to the opening at 98.00.

On Tuesday, US President Donald Trump said he was not considering imposing tariffs on cars imported from Japan at the moment, adding that the US had reached a preliminary agreement with Japan on trade relations between the two countries, adding that these trends and others aimed at re-course Correct between the United States and other countries and to deal fairly commercially.

On the other hand, Japanese Prime Minister Shinzo Abe noted that the importance of the stability of trade relations between Tokyo and Washington is not only for the economy of Japan and the United States, but for the global economy, explaining that he hopes the negotiations will reach positive results between the two parties and in particular that they can contribute to the stability of the global economy. Japan is working to assess the trade tensions between the two parties and their effects on the Japanese economy at the moment.

On the other hand, markets are looking ahead on Thursday by the US economy to reveal the second reading of GDP, which may reflect the expansion of the largest economy in the world 2.0% in the second quarter compared to the previous initial reading of 2.1% growth, while the second reading of GDP may show measured Prices have stabilized at 2.4%, little changed from the previous quarter's preliminary reading.

President Trump said earlier this week that US trade officials had received overnight calls from the Chinese that Beijing was ready to return to the negotiating table with Washington to reach a trade deal, and noted that he had "great respect for the fact that China had contacted them." "They want to make a deal." This is the first time I've seen them really want to do a deal, and I think this is a very positive step. "

On the other hand, a Chinese Foreign Ministry spokesman said on Monday that he was not aware of a phone call between the two sides, but Chinese Vice Premier Liu Huo also noted Monday that "China ... firmly opposes the escalation of trade war. It benefits China, which is not good for the United States, nor does it benefit the interests of people around the world. "

This comes after we followed last Friday's report that China plans to impose 10% tariffs later this year on US goods and goods worth $ 75 billion in response to the US administration's announcement earlier this month that it would impose 10% tariffs. Chinese goods and goods worth $ 300 billion by early September and a partial postponement of the decision until mid-December.

Technical Analysis

The price of gold starts today with a bearish bias to breach the pivotal support 1530.00, where the price is affected by the negativity of Stochastic, which requires attention from the upcoming trading, as breaking this level will put the price under additional negative pressure targeting the 1517.25 areas and may extend to 1508.30 before any new attempt to rise. .

So far, the main positive scenario remains valid above 1530.00, noting that our next key targets start at 1560.00 and extend to 1600.00.

Expected trading range for today is between 1520.00 support and 1555.00 resistance.

Expected trend for today: Bullish.