Gold analysis 03.12.2019

Gold futures fluctuated in a narrow range that tended to decline during the Asian session to witness the bounce for the third session from the highest since November 22 last year with the positive stability of the US dollar index, indicating that the bounce for the second session from the lowest since 21 of the same month WASHINGTON - The US economy, the world's largest economy, is under pressure from investors on Tuesday, and in the shadow of investor pricing for the trade protectionism of President Donald Trump's administration.

At 04:58 AM GMT gold futures for February delivery fell 0.10% to trade at $ 1,466.60 an ounce compared with the opening at $ 1,468.00 an ounce, knowing that the contracts started the trading session on a falling price gap after yesterday's trading ended At $ 1,469.20 an ounce, with the US dollar index up 0.01% to 97.92 compared to the opening at 97.91.

Earlier this week, US President Donald Trump said his administration would impose tariffs on steel and aluminum imports from Brazil and Argentina, adding that the two countries had made a massive devaluation, which could adversely affect US farmers. Re-duties on imports of steel and aluminum from those countries.

On Monday, President Trump said he did not know that Wednesday's signing of a bill recently approved by the US Congress that would support protesters in Hong Kong could hinder the first US-China trade pact, while stressing that Beijing still wants A trade deal with Washington, "but we'll see what happens,"

In the same vein, US Secretary of Commerce Wilbur Ross noted yesterday that his country will increase customs duties by 15% on Chinese goods and goods worth $ 160 billion as previously approved by December 15, if the two parties do not reach a trade agreement, with He said that the trade deal should be good and that US President Trump will not sign a bad deal.

Yesterday, following remarks by US President Trump and US Secretary of Commerce Ross, White House chief adviser Killian Conway said it was possible to conclude a trade agreement with China before the end of this year, adding that the first phase of the trade agreement is currently being written. Chinese Foreign Ministry has imposed sanctions against the American human rights organization because of recent support for protesters in Hong Kong.

The Chinese Foreign Ministry also reported yesterday that Beijing decided to suspend US military planes and prevent them from entering Hong Kong's airspace for what is considered to be contrary to international laws. This came hours after the Global Times reported on Sunday that the Chinese government wants the US administration to backtrack on its imposition. Customs duties on Chinese goods and goods as part of the first phase of the forthcoming trade agreement between the two parties.

This comes in conjunction with the continuing unrest in Hong Kong and following the adoption of the US administration in Washington to support the protesters in Hong Kong, which China denounced at the end of last week clearly, as we followed last Friday the Chinese Foreign Ministry's statement that Beijing will take "strong countermeasures" Against Washington, hours after other statements by the ministry that Washington has "evil intentions."

Technical Analysis

Gold is trading around SMA 50, noting that the Stochastic is losing its positive momentum to move around overbought areas, awaiting the price to resume the expected bearishness over intraday basis, whose targets start with testing 1447.00.

Note that the continuation of the bearish correction depends on stability below 1489.00, where a breach of this level will lead the price to regain the main bullish path and achieve positive targets starting at 1535.00 then 1556.70, while breaking 1447.00 will extend the bearish wave to reach 1413.10 as the next target.

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

Expected trend for today: Bearish.