Gold analysis 18.12.2019

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session, condoning the rise of the US dollar index for the third session in five sessions from the lowest since the beginning of last July according to the inverse relationship between them and amid the scarcity of economic data today Wednesday by the American economy and with the aspiration To members of the Federal Open Market Committee talk hours after US President Donald Trump renewed his call for the Federal Reserve to press ahead with cutting interest on federal funds and expanding stimulus.

At exactly 04:09 AM GMT, the gold futures contracts for February delivery rose 0.03% to trade at $ 1,480.80 per ounce compared to the opening at $ 1,480.40 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded yesterday's trading At $ 1,480.40 an ounce, while the US dollar index rose 0.08% to 97.32 compared to the opening at 97.24.

Investors are looking forward to the participation of Member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve Bank of La Brenard in a panel discussion entitled "Politics, Technology and Globalization" within the European Central Bank seminar held in honor of Benoit Core in Frankfurt, before we witness another member's speech in The Federal Reserve and Chicago Fed President Charles Evans at the Indiana Economic Club lunch.

This comes hours after US President Donald Trump called on members of the Federal Committee to cut interest rates further after reducing this year three times by 25 basis points to between 1.50% and 1.75%, and this came through his tweet to him, which he touched upon The US dollar’s ​​position remains strong against other currencies, and almost no inflation, so it is time for further rate cuts to increase exports.

In another context, we followed yesterday, American Trade Representative Robert Lighthizer expressed that his country’s agricultural sales are expected to double to China, with his statement that the first stage of the trade agreement between Washington and Beijing is enforceable, and we would like to point out that the head of the International Monetary Fund, Christina Georgieva And credit rating agency Fitch yesterday raised their forecast for the growth of the Chinese economy for 2020 to 6% with optimism about the agreement.

Otherwise, we have followed the statements of the spokesman for British Prime Minister James Slack, in which he expressed the fact that the election statement was clear about excluding any extension in the transitional period, explaining that his country’s government is working to start negotiations on future trade relations with the European Union as soon as possible, Adding that the government intends to build trade relations with the Union by January of 2021.

Slack also stressed that Britain will leave the customs union and the single market for the euro area we are any circumstances, and this came hours after he stated that Britain's exit agreement from the European Union will be presented to Parliament next Friday and that the agreement aims to set agreed terms between Prime Minister Boris Johnson and Brussels in He formed a law, while expressing his government's confidence in moving forward in securing a long-term free trade agreement with the union.

In the same vein, we also followed up this week at the beginning of this week, the report that touched on the fact that British Prime Minister Johnson will work to change the law to ensure that the transition period for his country’s exit from the European Union does not extend beyond the end of next year 2020, which may pose a potential challenge for him because many Some observers of the developments of Britain's exit from the European Union believe that reaching a trade deal between the two parties needs more time.

Technical analysis

Gold price continues to move within a narrow range, and therefore, the bearish trend scenario will remain as is unchanged for the coming period, organized within the descending correction channel that appears in the above chart, relying on stability below the level of 1489.00, noting that breaking 1461.00 will facilitate the task of achieving our goals Negative that begins at 1447.00 and extends to 1413.10.

The expected trading range for today is between 1460.00 support and 1485.00 resistance.

Expected trend for today: bearish.