Gold Analysis 27.11.2019

Gold futures fluctuated in a narrow range, tilted lower during the Asian session to witness the bounce for the fourth session in six sessions from the highest since November 7 amid the positive stability of the US dollar index according to the inverse relationship between them on the eve of developments and economic data expected Wednesday from The US economy has accepted the world's largest economy and in the shadow of market pricing opportunities to resolve trade disputes between Washington and Beijing.

At 04:58 AM GMT gold futures for February delivery fell 0.15% to trade at $ 1,466.10 an ounce compared to the opening at $ 1,468.30 an ounce, knowing that the contracts started the session on a bullish price gap after yesterday's trading ended At $ 1,467.40 an ounce, with the US dollar index up 0.04% to 98.34 compared to the opening at 98.30.

Investors are currently awaiting the US economy to reveal the second reading of GDP, which may reflect the expansion of the largest economy in the world 1.9% in the third quarter, little change from the previous preliminary reading, and the second reading of GDP measured in prices may show the stability of growth at 1.7 % Was also unchanged from the initial reading of the previous quarter.

This comes in conjunction with the release of the Durable Goods Orders reading, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a contraction in the decline to 0.5% from 1.2% in September, while the core reading may appear. The index is up 0.2% vs. 0.4% in September.

This is also in conjunction with the release of the index of claims for the last week on the 23rd of this month, which may reflect a decrease of 4 thousand applications to 223 thousand applications compared to 227 thousand applications in the previous weekly reading, as may read the index of claims applications for investors for the past week on 16 This month, a decline of 5 thousand applications to 1,690 thousand applications against 1,695 thousand applications.

The data released by the Chicago Purchasing Managers' Index (PMI), which may reflect a contraction in the contraction to 47.2 from 43.2 in October, before the release of the US housing market data with the release of the reading. Existing home sales may show slower growth to 0.2% versus 1.5% in September.

This comes in conjunction with the release of personal spending and income data which may reflect the acceleration of personal spending growth to 0.3% vs. 0.2% in September, and the stabilization of personal income growth at 0.3% unchanged from the previous reading in September Core CPE reading could show a 0.2% growth versus steady zero levels in September.

Later in the day, investors are also awaiting the release of the Beige Book report, which is important two weeks before the FOMC meeting, one of the cornerstones of the Fed's policy makers' decision-making to support the US economy. With the markets looking ahead to the developments of the trade war between Washington and Beijing.

In view of the developments in the US-China trade war, the Ministry of Commerce reported that senior trade commissioners from Washington and Beijing held a phone call on Tuesday morning to discuss how to "resolve the core issues". US President Donald Trump also yesterday expressed the fact that the trade talks With China, the first phase of the trade deal is nearing completion after negotiators from both sides spoke by telephone.

US national security adviser Robert O'Brien said last Saturday that a trade agreement with China could be reached by the end of this year, and we would like to point out that markets are awaiting whether Washington will do its tariffs on Chinese goods worth $ 156 billion by January 15. December will either freeze its decision until further notice.

Technical Analysis

Gold has been testing the resistance of the descending channel and is starting to bounce back from there, supported by overbought signs appearing through Stochastic, awaiting the price to stimulate further negative trading today, where our first target is at 1447.00.

A break above this target will push the price to 1413.10 as the next corrective target, while a breach of 1464.00 is a positive factor that will push the price for more intraday gains and test 1489.00 areas before any fresh attempt to decline.

Expected trading range for today is between 1440.00 support and 1470.00 resistance.

Expected trend for today: Bearish.