Gold Analysis 18.11.2019

Gold futures fluctuated in a narrow range, tilted lower during the Asian session, shrugging off the decline of the US dollar index for the fourth consecutive session from its highest since October 15 last in accordance with the inverse relationship between them on the eve of developments and economic data expected Monday by the economy In the shadow of the market pricing for opportunities to resolve the trade war between the United States and China, which has passed its first year recently.

At 03:55 am GMT, gold futures for December delivery fell 0.12% to trade at $ 1,466.10 an ounce compared with the opening at $ 1,467.80 an ounce, knowing that the contracts started the session on a falling price gap after the close of trading Last week was at $ 1,468.50 an ounce, while the US dollar index fell 0.07% to 97.91 compared to the opening at 97.98.

Investors in the US economy are awaiting the release of the housing market data with the release of the housing index by the National Association of Home Builders, which may reflect stability at 71 in November. This comes before we will see tomorrow the release of both housing starts and a statement. Construction and amid expectations of shrinking building permits and the rise of homes started construction during October.

This comes hours after the end of the semi-annual testimony of the Governor of the Federal Reserve Jerome Powell to Congress, which noted that the economy is in good condition and that growth is moderate and the labor market is strong and that he does not expect any economic disaster any time soon, with the exclusion of any policy adjustment Monetary either cut or raise interest rates on federal funds during the remainder of this year.

In the same context, the market is looking forward to the release of the minutes of the Federal Open Market Committee meeting held on October 29-30 during which it decided to cut interest rates for the third time in a row by 25 basis points to between 1.50% and 1.75%. , Amid the signal then that the subsequent adjustment of the monetary policy of the Fed will require a large and sustained movement in inflation to consider resumed rate hikes.

Apart from that, we followed Chinese Vice Premier Liu Hu's phone call Saturday morning with US Treasury Secretary Stephen Munchen and US Trade Representative Robert Leitzer on the "Phase I" deal, according to Chinese state media. They talked about the fact that the two sides had "constructive talks" on their "fundamental concerns" and agreed to keep in close contact.

Chinese Ministry of Commerce spokesman Gao Feng Noh said last Thursday that China and the United States are in deep discussions on the "first phase" deal, saying that the retreat of some tariffs is the key to reaching an agreement. "This is an important condition for both parties to reach an agreement," he said.

White House economic adviser Eric Wadlow also noted Thursday that Washington was "approaching" a trade deal with Beijing, and we would like to point out that some of the report recently touched on the postponement of the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping to sign an interim trade agreement from Later this month to next month, the date or venue of their upcoming meeting has yet to be revealed.

Technical Analysis

The price of gold continues to fluctuate near the resistance of the descending corrective channel and still below it, noting that the stochastic is losing significantly positive momentum, while the moving average is forming 50 negative negative pressure against the price.

Therefore, these factors encourage us to continue to favor the bearishness during the coming sessions, which aims to test the level of 1447.00 initially, bearing in mind that the breach of 1470.00 will push the price to visit 1489.00 before any new attempt to decline.

Expected trading range for today is between 1447.00 support and 1475.00 resistance.

Expected trend for today: Bearish.