Gold Analysis 12.11.2019

Gold futures fluctuated in a narrow upward range during the Asian session to witness the rebound to the second session of the lowest since August 5 last, ignoring the rebound of the US dollar index for the sixth session in eight sessions from the lowest since the ninth of the same month according to the inverse relationship The US economy is in the middle of a tightening of economic data earlier this week, with the prospect of US President Donald Trump's speech in New York, particularly on the development of his country's trade talks with China.

Gold futures for December delivery rose 0.06% to trade at $ 1,456.80 an ounce compared to the opening at $ 1,455.90 an ounce, knowing that the contracts started the session on a falling price gap after the close of trading Yesterday at $ 1,457.10 an ounce, shrugging off the rise in the US dollar index 0.01% to 98.23 compared to the opening at 98.22.

Investors are now awaiting the outcome of the US president's speech at the New York Economic Club, before witnessing Fed Governor and Federal Open Market Committee member Richard Clarda delivering a speech entitled "Monetary Policy, Price Stability and Bond Returns" at a conference sponsored by the Bank for International Settlements and Bank Federal Reserve as well as the Swiss National Bank in Switzerland.

This comes just hours before the start of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress in Washington, where he is expected to give tomorrow the first half of his semi-annual testimony on policy before the Financial Services Committee in the House of Representatives, before Powell will deliver after Tomorrow, the second half of his testimony before the Senate Banking Committee.

Technical Analysis

Gold has managed to reach our first awaited target at 1447.00 and stabilizes near it, and the price is under continuous negative pressure coming from SMA 50, which supports the extension of the bearish corrective trend over the coming period, noting that breaking the mentioned level will press the price to visit 1413.10 as a stop. Next corrective.

Therefore, we will continue to favor the bearishness over intraday and short term basis, organized inside the descending channel that appears in the picture, unless the price rushes to breach the 1489.00 level and hold above it.

Expected trading range for today is between 1440.00 support and 1465.00 resistance

Expected trend for today: Bearish