Gold analysis 24.12.2019

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness the highest since November 7, disregarding the US dollar index rebound to the sixth session in eight sessions from the lowest since the beginning of July according to the reverse relationship between them on the threshold of developments The economic data expected today by the American economy, the largest economy in the world.

At exactly 03:07 AM GMT, the gold futures contracts for February delivery rose 0.19% to trade at $ 1,492.70 per ounce compared to the opening at $ 1,489.80 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,488.70 an ounce, while the US dollar index rose 0.02% to 97.68 compared to the opening at 97.66.

Investors are currently awaiting by the US economy the disclosure of the Richmond Industrial Index reading, which may reflect an expansion of 1 value versus a contraction at 1 value in the previous reading last November, and this comes amid aspiration for the US Treasury to reveal its semi-annual report About economic policies and the international exchange rate.

Other than that, Chinese Premier Li Keqiang will host a tripartite summit with Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae later today in Chengdu focusing on trade between his country and Japan and South Korea, and this comes amid expectations that the trading will be In global financial markets, weak on the eve of Christmas, before the trading pulse is absent tomorrow, Wednesday, because of the Christmas holidays.

It is noteworthy that China is the largest consumer of minerals globally and the second largest economy in the world and the second largest industrialized country globally after the United States announced at the beginning of this week that it will reduce customs duties on its imports of more than 850 products starting January 1, including some meat In addition to information technology products, starting early next July.

This follows US President Donald Trump said last Friday that he had a "very good conversation" with his Chinese counterpart Xi Jinping, on the first stage of the trade agreement reached in the middle of this month which is expected to be signed early next year. 2020, and the US President expressed last Saturday that the two countries will sign "very soon" the deal.

Technical analysis

The gold price touched the pivotal resistance level 1489.00 and maintains its stability below it until now, accompanied by the emergence of clear negative signals through the stochastic indicator, which supports the chances of a bounce down to resume the downside corrective trend, which targets 1447.00 as the first stop.

Therefore, the negative scenario will remain valid unless 1489.00 is breached and stability above it, noting that breaking 1467.00 will facilitate the price's mission by achieving the awaited target.

The expected trading range for today is between 1467.00 support and 1495.00 resistance.

Expected trend for today: bearish.