Gold Analysis 21.10.2019

Gold futures fluctuated in a narrow range, tilted lower during the Asian session, shrugging off the decline of the US dollar index for the eleventh session in fourteen sessions from the highest since May 12, 2017 according to the inverse relationship between the lack of economic data on Monday from The US economy has accepted the largest economy in the world and following the developments of the Brexit file and the remarks of Chinese Vice Premier Liu Ho.

At 03:47 am GMT gold futures for December delivery fell 0.14% to trade at $ 1,491.40 an ounce, compared with the opening at $ 1,491.68 an ounce. The dollar index shed 0.01% to 97.33 compared to the opening at 97.34.

Over the weekend, the British Parliament voted to postpone the vote on the agreement reached by Prime Minister Boris Johnson with the European Union for the orderly exit of the country and the postponement of the vote to a "meaningful vote" on the exit deal, which forced the British Prime Minister to Demand Brussels to extend the deadline for the exit scheduled before the end of this month.

EU leaders do not necessarily have to accept the extension of the Brexit deadline again. In the same vein, markets are looking forward later this week for the British government to submit a final Brexit bill in its efforts to pass its agreement. The latter with Brussels in the British parliament amid the aspiration for the outcome of the vote of British lawmakers on the bill.

Otherwise, Chinese Vice Premier Liu Hu said the United States and China have made "significant progress" in trade talks, following a partial trade agreement earlier this month, adding that both Washington and Beijing They are working to sign a written agreement between them as a cornerstone towards resolving trade disputes between the two largest economies in the world.

Technical Analysis

Gold is showing sideways and narrow range trading to fluctuate around SMA 50, and remains within the descending channel shown on the chart above, while the stochastic is gradually losing momentum.

Thereby, we will hold onto our bearish outlook unless 1505.00 is breached and hold above it, noting that a breach of 1485.00 is required to confirm resuming the bearishness with the next main target at 1447.00.

Expected trading range for today is between 1470.00 support and 1505.00 resistance.

Expected trend for today: Bearish.