Gold analysis 16.12.2019

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to witness its bounce for the second session in three sessions from the top since November 7, neglecting the negative stability of the US dollar index near its lowest in five months according to the inverse relationship between them after The economic developments and data that were reported on the Chinese economy by the largest consumer of metals globally and on the cusp of developments and economic data expected on Monday by the US economy, the largest economy in the world.

At exactly 03:59 AM GMT, gold price futures for February delivery fell 0.07% to trade at $ 1,478.90 per ounce compared to the opening at $ 1,480.00 per ounce, knowing that the contracts started the session’s trading on a falling price gap after the week’s transactions were concluded The past is at $ 1,481.20 an ounce, while the US dollar index fell 0.06% to 97.06 compared to the opening at 97.12.

We have followed the National Bureau of Statistics of China, the second largest economy in the world, revealed the annual reading of the retail sales index, which showed an acceleration in the pace of growth to 8.0% compared to 7.2% in the previous annual reading of last October, exceeding expectations at 7.6%, while reading showed Unemployment rates are stable at 5.1%, little changed from the previous reading in October.

We also followed the National Bureau of Statistics of China revealed the industrial sector data for the second largest industrial country in the world after the United States of America, with the release of the annual reading of the industrial production index, which showed an acceleration in the growth rate to 6.2% compared to 4.7% in the previous annual reading for the month of October , Outperforming expectations for a 5.1% acceleration.

On the other hand, investors are anticipating by the US economy the disclosure of industrial sector data with the release of the New York Industrial Index reading, which may reflect a widening of what amounted to 5.1 compared to 2.9 last November, and that comes before we witness the release of the initial reading of the manufacturing PMI Markit is for the US, which may reflect the stability of the expansion at 52.6, little changed from November.

This comes in conjunction with the disclosure of the primary reading of the Markets PMI for the United States, which may reflect a widening of 52.0 compared to 51.6 in the previous reading of November, leading to the disclosure of housing market data with the release of the housing index reading before The National Association of Home Builders, which may reflect stability at 70 in November.

Technical analysis

The price of gold made slight positive trades in the previous sessions to settle around 1475.00, and we notice that the stochastic indicator has lost the positive momentum to show clear saturation in the purchase, so that the downside corrective scenario remains valid and effective for the coming period, organized within the falling channel that appears in the image.

We point out that a break of 1460.00 will facilitate the price task by achieving our next negative targets that start at 1447.00 and extend to 1413.10, while the downside trend will remain valid unless the price rushes to breach the 1489.00 level and stability above it.

The expected trading range for today is between 1455.00 support and 1485.00 resistance.

Expected trend for today: bearish.