Gold Analysis 22.11.2019

Gold futures fluctuated in a narrow upward range during the Asian session, shrugging off the rebound of the US dollar index for the fifth session of its lowest since November 5 in accordance with the inverse relationship between them on the eve of developments and economic data expected on Friday by the US economy and in the shadows Developments of the trade war between Washington and Beijing, which have recently passed their first year.

At 04:13 am GMT gold futures for February delivery rose 0.05% to trade at $ 1,465.10 an ounce compared to the opening at $ 1,464.30 an ounce, knowing that the contracts started the session on a bullish price gap after yesterday's trading ended At $ 1,463.60 an ounce, while the US dollar index rose 0.02% to 97.95 compared to the opening at 97.93.

Investors are currently awaiting the release of the preliminary reading of the US Manufacturing and Services PMI from Markit, amid expectations that the initial reading of the manufacturing sector will expand to 51.5 vs. 51.3 in the previous reading for October, as the preliminary reading of the PMI may show SOA expanded to 51.2 vs. 50.6 in October.

The final reading of the University of Michigan's consumer confidence index, which may show an expansion to 95.8 compared to 95.7 in the previous initial reading and 95.5 in October, comes hours after the release of last Wednesday's minutes of the FOMC meeting held on 29-30 October, when interest rates were cut for the third time in a row by 25 basis points to between 1.50% and 1.75%.

Otherwise, we followed the report that Chinese Vice Premier Liu Hu recently invited US Trade Representative Robert Lightzer to Beijing for further talks this month, the South China Morning Post reported yesterday, and is likely to be delayed. Washington's new tariffs are due to be applied in the middle of next month on Chinese goods even if no agreement is reached by then.

US President Donald Trump may soon sign the Hong Kong Human Rights and Democracy Bill passed by the Senate on Wednesday before legislation that supports protesters in Hong Kong is put to a vote in the House of Representatives, which has been attacked. It is evident by Beijing that may cast a shadow over the chances of resolving the differences between the world's two largest economies.

Technical Analysis

The price of gold stabilized below the resistance of the descending correctional channel, and features a rising wedge pattern where the price is attempting to break its support, which supports the chances of achieving further decline during the coming sessions, on the way to visit the level of 1447.00 initially.

Therefore, a bearish bias is likely for today, noting that exceeding the mentioned target will push the price to 1413.10 as the next corrective stop, while stability below 1489.00 is the most important condition for the continuation of the expected decline.

Expected trading range for today is between 1445.00 support and 1475.00 resistance.

Expected trend for today: Bearish.