Gold Analysis 14.11.2019

Gold futures fluctuated in a narrow range upward to see its rebound to the third session of the lowest since August 2, ignoring the rise of the dollar index according to the inverse relationship between them following the developments and economic data that followed from the Chinese economy, the largest consumer of metals in the world and on the eve of developments and data The US economy is expected Thursday, which includes the testimony of Fed Governor Jerome Powell before Congress as well as the speech of members of the Federal Open Market Committee.

At 05:01 am GMT, gold futures for December delivery rose 0.10% to trade at $ 1,465.40 an ounce compared to the opening at $ 1,464.00 an ounce, knowing that the contracts started the session on a bullish gap after the close of trading Yesterday at $ 1,463.30 an ounce, while the US dollar index rose 0.04% to 98.38 compared to the opening at 98.34.

The National Bureau of Statistics (NBS) of China revealed that the annual retail sales index showed a slowdown in growth to 7.2% compared to the prior yearly reading of September and 7.8%, while the annual reading of industrial production showed a slowdown to 4.7% vs. 5.8% in September was also worse than expected at 5.8%, while the unemployment rate showed a decline to 5.1% versus 5.2% in September.

On the other hand, investors are looking forward to the speech of Fed Vice Governor and Federal Open Market Committee member Randall Corrales via the opening speech at the annual conference of the International Association of Insurance Supervisors in Abu Dhabi, before we see the release of the producer price index, which is a preliminary indicator of inflationary pressures. That may reflect 0.3% growth versus a 0.3% contraction in September.

The core PPI reading also shows a 0.2% growth versus a contraction of 0.3%, coinciding with the release of the jobless claims for the week ending on the 9th of this month, which may reflect an increase of 4 thousand applications to 215 thousand applications, while the reading may show Continued for the week ended on the second of this month, a decrease of 4 thousand applications to 1,685 thousand applications.

This comes before the Federal Reserve Deputy Governor and FOMC Member Richard Clarda talked about the monetary policy strategy, tools, and communication practices at the Cato Institute annual monetary conference in Washington, before we saw the speech of Chicago Fed Chairman Charles Evans and the committee member. Federalism at the annual Ventec conference hosted by the Federal Reserve Bank of Philadelphia.

Federal Reserve Governor Jerome Powell is expected to testify in the second half of his monetary policy testimony before the Senate Banking Committee on Wednesday after he made the first half of his policy testimony before the Services Committee. Finance in the House.

The President of the Federal Reserve Bank of New York and a member of the Federal Open Market Committee will also deliver the opening speech at the Economic Policy Conference in Asia, hosted by the Federal Reserve Bank of San Francisco, before witnessing the speech of St. Louis Fed Chairman and Federal Reserve Board member James Pollard. About monetary policy at the Rotary Club in Louisville

Technical Analysis

The price of gold has stabilized around 1465.00 since yesterday, and we note that the stochastic indicator begins to get rid of its negative momentum, waiting for the resumption of the bullish inclination targeting the test of 1489.00 during the coming sessions.

Therefore, we hold onto our bullish intraday direction unless 1447.00 is breached and stability below it, as a breach will press the price to head towards the next corrective level at 1413.10.

Expected trading range for today is between 1450.00 support and 1480.00 resistance

Expected trend for today: Bullish