Gold analysis 04.12.2019

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce back to the fourth session in six sessions from the lowest since November 12, when it tested the lowest since August 2, disregarding the positive stability of the US dollar index, explaining Its bounce to the second session from the lowest since the fifth of last month according to the inverse relationship between them on the cusp of developments and economic data expected today by the US economy and with the pricing of trade protectionism by Washington.

At exactly 04:52 AM GMT, gold price futures for February delivery rose 0.13% to trade at $ 1,485.10 per ounce compared to the opening at $ 1,483.20 per ounce, knowing that the contracts started the session’s trading on a falling price gap after yesterday’s trading was concluded At $ 1,484.40 an ounce, while the US dollar index rose 0.04% to 97.76 compared to the opening at 97.93.

Investors are looking for the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of the pace of job creation to 137,000 added jobs compared to 125,000 added jobs in October, hours before the disclosure Monthly report of jobs except agricultural and unemployment rates in addition to the hourly rate for the month of November.

This comes before we witness the issuance of the final reading of the service provision institute index by Marquette about the United States, which may reflect the stability of the expansion at 51.6, little changed from the initial reading for November and 50.6 in October, and we would like to point out that the service provision Its importance is that the service sector in the United States accounts for more than two-thirds of GDP.

Up to the disclosure of the Institute of Service Supply index reading, which may show a shrinkage of expansion to 54.5 compared to 54.7 in October, and this comes before we witness the Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee Randall Quarles testifying before the Financial Services Committee in the Council Representatives in the capital of the United States of America Washington.

Otherwise, we followed yesterday, US President Donald Trump expressed his preference in one way or another to postpone the conclusion of a trade deal with China until after the 2020 presidential elections, with his statement that Beijing wants to conclude a deal at the moment with Washington and that "we will see if the deal will be correct or No, "and that came less than two weeks before Washington activated a 15% tariff increase on Chinese goods worth $ 160 billion by the 15th of this month.

In another context, US President Trump has threatened France with imposing 100% tariffs on goods it supplies to his country estimated at $ 2.4 billion to pressure Paris to back down from its intention to impose a new digital services tax that will harm technology companies, especially American, and this comes hours after Trump expressed Last Monday, his administration will impose customs duties on his country's steel and aluminum imports from Brazil and Argentina.

Technical analysis

Gold price traded positively yesterday evening to test the $ 1480.00 barrier, noting that the stochastic indicator shows clear saturation in purchasing, which supports the chances of returning to resume the expected bearish direction in the intraday and short term, while reminding us that we are waiting for a visit to the level of 1447.00 as the next main target.

It should be noted that the continuation of the downward corrective wave depends on stability below 1489.00, as its breach will stop the negative scenario and lead the price to return to the main bullish path again.

The expected trading range for today is between 1460.00 support and 1490.00 resistanc

Expected trend for today: Overall fall.