Gold analysis 27.12.2019

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness the highest since the beginning of last November and to promise about its third weekly gains in a row with the dollar index rebounding for the fourth session in five sessions from its highest since the sixth of December / This December, according to the inverse relationship between them, amid the scarcity of economic data today, Friday, by the US economy, the largest economy in the world, and with market pricing developments of the first stage agreement between Washington and Beijing.

At exactly 04:07 AM GMT, gold price futures for February delivery rose 0.10% to trade at $ 1,518.00 per ounce compared to the opening at $ 1,516.50 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,514.40 an ounce, with the dollar index down 0.11% to 97.43 compared to the opening at 97.54.

The financial markets are witnessing relatively volatile trading during the current week that carried Christmas holidays with weak liquidity levels in the financial markets, while attention is being paid to the developments of the first phase agreement between the United States and China, the largest global consumer of metals, which was reached in the middle of this month and is expected To be signed early next year 2020.

We would like to point out, because the Chinese Ministry of Commerce announced Thursday that Beijing and Washington are in close contact regarding the signing of the first stage of the trade agreement, with the ministry reporting that the two parties are still discussing the necessary measures before signing it, and this came hours after the Chinese Foreign Ministry spokesman Last Wednesday, his country and the United States were in close contact for the time being, including representatives of the two parties on the economic and commercial side, and they are working to agree on arrangements for signing the first-stage agreement.

Technical analysis

Gold price shows more bullish tendency to move away from the $ 1500.00 barrier, reinforcing expectations to continue the rise in the intraday and short term, pending the visit of the previously recorded summit at 1556.70 as the next major station.

SMA 50 supports the suggested bullish wave, which will remain valid and active unless 1489.00 level is broken and stability below it.

The expected trading range for today is between 1500.00 support and 1530.00 resistance.

Expected trend for today: bullish.