Gold Analysis 13.11.2019

Gold futures fluctuated in a narrow and bullish range during the Asian session to witness the rebound to the second session of the lowest since August 2 amid the rebound of the US dollar index for the second session from the highest since October 15, according to the inverse relationship on the cusp Economic developments and data expected on Wednesday by the US economy, including the testimony of the Federal Reserve Governor Jerome Powell before Congress in Washington and in the shadow of the market pricing of the developments of trade talks.

Gold futures for December delivery rose 0.31% to trade at $ 1,461.00 an ounce compared to the opening at $ 1,456.50 an ounce, knowing that the contracts started the session on a bullish gap after the close of trading Yesterday at $ 1,453.70 an ounce, with the US dollar index down 0.01% to 98.32 compared to the opening at 98.33.

Investors in the US economy are awaiting the release of inflation data with the release of the CPI reading, which may reflect an acceleration of growth to 0.3% vs. steady at zero in September, while the core reading of the same index may show growth accelerated to 0.2% vs. 0.1%, in An annualized reading of the index may show growth stabilizing at 1.7%, and a core annual reading of the index may reflect a stable growth of 2.4%.

This comes before we see the start of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress, where he is expected to give the first half of his semi-annual testimony on monetary policy before the Financial Services Committee in the House of Representatives, before we witness the US Treasury disclosure Read the federal budget for the month of October.

Yesterday, President Donald Trump told the Economic Club in New York that Beijing had cheated on trade agreements with Washington and that it had developed into its economy at the expense of American workers while casting a color on former US presidents who had not paid attention to it. He noted that the first phase of the final trade agreement with China is expected to be concluded soon, without specifying a date.

Last Saturday, US President Donald expressed that trade talks with China were going "very well" and that Beijing wanted a "much more than me" trade deal, which was more optimistic about his recent remarks when he denied the White House last Friday. Agreement to abolish existing tariffs, noting that Washington will not agree to a complete retreat from imposing tariffs on Chinese goods.

Chinese Ministry of Commerce spokesman Gao Feng Noh said last Thursday that Beijing and Washington agreed to eliminate some tariffs based on each other's goods at the same time, pointing out that both sides are closer to "the first phase of the trade agreement after constructive negotiations over the past two weeks." According to Chinese state media at the time.

A US official also confirmed that both the United States and China had agreed to abolish tariffs, adding that the planned plan faces fierce domestic opposition in the White House, according to a Reuters report, hours after the report touched on last week. Postponement of the signing of the initial trade agreement between the United States and China until next month.

It is worth mentioning that some of the report recently mentioned that the upcoming meeting between the US president and his Chinese counterpart to sign an interim trade agreement may be postponed to December amid the US and Chinese discussion of the terms of the agreement and the place where the two presidents will gather. The last meeting to sign the agreement after the meeting of the North Atlantic Treaty Organization scheduled for early next month.

Technical Analysis

Gold has not been able to break 1447.00, bouncing up on its way to a potential test of 1489.00, which makes us likely to see further rallies today, noting that we will be waiting for a bearish bounce from the target areas to resume the bearish correction again.

On the other hand, it should be noted that breaching 1447.00 will stop the suggested rally and press the price down towards 1413.10 directly.

Expected trading range for today is between 1447.00 support and 1480.00 resistance

Expected trend for today: Bullish