Gold Analysis 01.11.2019

Gold futures fluctuated in a narrow range, tilted lower during the Asian session, ignoring the decline of the US dollar index for the seventeenth session in twenty-four sessions from its highest since May 12, 2017 Friday by the US economy which includes the speech of members of the Federal Open Market Committee.

At 04:37 am GMT gold futures fell 0.15% to trade at $ 1509.70 an ounce compared with the opening at $ 1511.92 an ounce, while the dollar index fell 0.07% to 97.23 compared to the opening at 97.30.

Investors in the US economy are awaiting the release of last month's labor market data, which could reflect a rise in unemployment to 3.6% versus 3.5% in September, while the Non-Farm Payrolls reading may show a slower pace of job creation to 90,000. Against 136K jobs, the hourly average income reading could show a 0.3% growth versus steady zero levels.

This comes before we see the final reading of the US Manufacturing PMI by Markit, which may reflect the stability of the expansion at 51.5, little changed from the initial reading of last month versus 51.1 in September, and before we see the largest The ISM manufacturing index is expected to show a contraction shrinking to 49.0 vs. 47.8 in September.

In the same context, markets are also looking ahead to the US economy for the ISM Manufacturing Price Index reading to 50.1 versus a contraction of 49.7 in September, coinciding with the release of the Construction Spending which reflects accelerated growth to 0.2. % Compared to 0.1% last August.

This comes before we see FOMC and Fed Governor Richard Clarda delivering a speech titled "The United States, Japan and the Global Economy at the Japan Society's Food Banquet in New York," in conjunction with another Fed Governor Randall Quarles's speech on Friedrich. Hayek and the price system at the event hosted by Yale University in Connecticut.

FOMC Chairman John Williams will co-chair a question and answer session at Rutgers University in New Jersey, following the decision of Federal Reserve policy makers at the FOMC meeting October 29-30. Cut interest rates for the third consecutive meeting by 25 basis points to between 1.50% and 1.75%.

Yesterday, White House economic adviser Larry Kudlow said the first phase of trade talks between Washington and Beijing was going well, following a report that said Chinese officials were skeptical of a long-term trade deal with the United States. From their emphasis on progress in the first phase talks.

Technical Analysis

The price of gold provided good trading to stabilize around 1510.00, and gets positive support from SMA 50, to support the chances of the continuation of the bullish trend during the coming sessions, which targets 1535.00 as the next main station.

Therefore, we will continue to favor the bullishness over the coming sessions provided that stability above 1489.00, bearing in mind that the current stochastic negativity may press the price to provide temporary negative trading before resuming the expected rally.

Expected trading range for today is between 1500.00 support and 1530.00 resistance.

Expected trend for today: Bullish.