Gold analysis 30.12.2019

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness its stability near the top since late October last, continuing its weekly gains for the fourth week in a row with the US dollar index rebounding for the fifth session in six sessions from the top since the sixth of December, according to the inverse relationship between them, on the cusp of developments and economic data expected today Monday by the US economy, the largest economy in the world.

At exactly 04:34 AM GMT, gold price futures for February delivery rose 0.15% to trade at $ 1,518.10 per ounce compared to the opening at $ 1,515.90 per ounce, knowing that the contracts started the session’s trading on a falling price gap after the week’s transactions ended The past at $ 1,518.10 an ounce, with the US dollar index down 0.19% to 96.82 compared to the opening at 97.00.

Investors are currently looking for the US economy to release the merchandise trade balance index, which may explain the widening deficit to $ 69.2 billion, compared to $ 66.8 billion last October, before we witness the preliminary reading of the wholesale inventory index, which may reflect accelerated growth. To 0.2%, compared to 0.1% in October.

This comes before we witness the revelation of the reading of the Chicago PMI reading, which may reflect a contraction of deflation to 48.2 compared to 46.3 last November, up to the disclosure of housing market data with the release of existing home sales, which may show an increase of 1.5% compared to It fell 1.7% in October, while the annual reading of the same indicator may show that growth accelerated to 7.4% compared to 3.9%.

It is noteworthy that gold futures contracts last week reflected their best weekly performance since the beginning of August, at which time they rose by more than two percent, condoning the success of the achievement of most global stock indices, especially the American levels, in new levels, in the wake of the expansion of the major global central banks in the facilitation policies. Monetary and quantitative easing, including rate cuts, in addition to optimism that Washington and Beijing are about to sign next month’s agreement for the first stage as part of efforts to resolve trade disputes between them.

Technical analysis

Gold price shows more sideways trading, and gets continuous positive support from the EMA50, while stochastic starts to cross positively now.

Consequently, we believe that opportunities are available to resume the bullish trend during the upcoming sessions, targeting mainly the level of 1556.70, while noting the importance of holding above 1489.00 for the continuation of the suggested rise.

The expected trading range for today is between 1505.00 support and 1530.00 resistance.

Expected trend for today: bullish.