Gold Analysis 06.11.2019

Gold futures fluctuated in a narrow upward range during the Asian session to witness the rebound for the second session of the lowest since October 16 last amid the decline of the US dollar index according to the inverse relationship between them on the eve of developments and economic data expected on Wednesday by the US economy This includes the FOMC members' talk and amid the look at developments in trade negotiations between Washington and Beijing.

Gold futures for December delivery rose 0.22% to trade at $ 1,485.70 an ounce compared with the opening at $ 1,483.50 an ounce, with the US dollar index down 0.02% to 97.93 compared to the opening at 97.95.

Investors are eyeing the outcome of Federal Open Market Committee Chairman Charles Evans at the Council on Foreign Relations in New York, ahead of the unveiling of a preliminary reading of a single US labor cost index that reflects a slower pace of growth to 2.2%. 2.6% in the second quarter.

Markets are also eyeing the US economy to reveal the preliminary reading of non-agricultural sector productivity, which may also show a slower pace of growth to 1.0% vs. 2.3% in the second quarter, up to FOMC member and New York Federal Reserve Chairman John Williams during his participation. In a moderate discussion about the future of the workforce at the Wall Street Journal event in New York.

On the other hand, investors hope that the United States, the largest economy in the world and China, the largest in Asia and the second largest in the world, to conclude the first phase of the trade agreement between them later this month, and that this will result in Washington not activating the recent decision to expand Imposition of tariffs on Chinese goods and goods by December 15.

Some of the report recently touched on the fact that China is seeking to force the United States to retreat from its trade protectionist policies and impose more tariffs on its exports to the US before President Xi Jinping agrees to take the politically sensitive move to the US to sign the first phase of the agreement. Trade with his US President Donald Trump.

We would like to point out that, as of now, it has not been announced when or where the US president will meet with his Chinese counterpart to sign the agreement, which could be a step towards resolving the trade disputes between Washington and Beijing in the shadow of the trade war between the two parties, which has passed its first year. On Monday, I touched on the fact that China is reviewing the available places in America where the two presidents could meet to sign the agreement.

Technical Analysis

Gold finished yesterday's trading below 1489.00, confirming the activation of the bearish trend scenario on the intraday basis, on its way to achieve negative targets starting at 1447.00, to be a bearish bias likely for today, supported by the negative pressure formed by SMA 50.

Therefore, we are waiting for negative trading over the coming sessions, bearing in mind that breaching 1489.00 level and holding above it will stop the expected decline and lead the price to recover again.

Expected trading range for today is between 1465.00 support and 1500.00 resistance.

Expected trend for today: Bearish.