Gold Analysis 07.10.2019

Gold futures fluctuated in a narrow range tilted lower during the Asian session amid the positive stability of the US dollar index for the first time in five sessions according to the inverse relationship between the lack of economic data earlier this week by the US economy, the largest economy in the world and amid looking forward to the upcoming Monday to Fed Governor Jerome Powell.

At 04:05 AM GMT gold futures for December delivery fell 0.22% to trade at $ 1506.33 an ounce compared with the opening at $ 1508.60 an ounce, amid the US dollar index rose 0.02% to 98.84 compared to the opening at 98.82.

Investors are looking forward to brief remarks by Fed Governor Jerome Powell at a movie premiere in Salt Lake City, ahead of Tuesday's speech, "A Look from the Federal Reserve," at the annual meeting of the National Association of Business Economics in Denver. Before taking part on Wednesday in the Federal Reserve's listening panel discussion in Kansas City.

This comes ahead of the release on Wednesday of the minutes of the Federal Open Market Committee meeting held on September 17-18, which was approved by the Federal Reserve to cut interest rates for the second time in a row by 25 basis points to between 1.75% and 2.00 This was in line with expectations, with the Commission's expectations for growth, inflation and unemployment in addition to the future interest rates for the next three years.

Fed Governor Powell noted at the end of last week's opening remarks at a Fed event in Washington that the US economy is good so far and that the Fed's task is to keep the economy as strong as possible. Approaching the target at two percent.

Powell also said Friday that the US economy faces long-term challenges as low interest rates make it harder to cut interest rates on federal funds in a recession, adding that the Fed is now looking at how efficient monetary policy tools are currently available. This year there are two meetings of the Federal Open Market Committee and they will discuss the state of the economy.

Later this week, markets are looking forward to a new round of high-level US-China trade talks in Washington as part of efforts to resolve trade disputes ahead of a possible escalation of the trade war by mid-month. US tariffs on Chinese goods worth $ 250 billion to 30% from 25% on the 15th of this month.

US President Donald Trump said Friday that he believes there is a good chance of reaching a trade deal with China. He said that when he talks with leaders of other countries, he is doing the right way, amid concerns that some opposition Democratic Party members are for his ruling Republican Party, they may hinder the efforts being made to reach an agreement with China.

Technical analysis

Gold remains confined between the pivotal levels of 1485.00 support and resistance now rising to 1530.00, where this support forms the neckline of a previously formed head and shoulders pattern, while resistance represents the broken main trend line, thus the price needs to breach one of these levels to determine its next destination. More accurately.

The breach of the mentioned support will put pressure on the pair for further bearish correction, where the next target is located at 1447.00, while breaching the resistance represents the key to return to the main bullish trend again, targeting 1555.00 as the first stop.

Expected trading range for today is between 1485.00 support and 1530.00 resistance.

Expected trend for today: Neutral.