Gold analysis 13.01.2020

Gold price futures fluctuated in a narrow range tilted toward decline during the Asian session, to witness its bounce for the third session in four sessions from its highest since March 22, 2013, disregarding the US dollar index rebound for the second consecutive session from its highest since December 26 / December, according to the inverse relationship between them on the threshold of developments and economic data expected today Monday by the US economy, the largest economy in the world.

At exactly 03:55 AM GMT, the gold futures contracts for February delivery fell 0.36% to trade at $ 1,557.40 per ounce compared to the opening at $ 1,563.00 per ounce, knowing that the contracts started the trading session on an upward price gap after the week's trades were concluded The past at $ 1,560.10 an ounce, while the US dollar index fell 0.07% to 97.35 compared to the opening at 97.41.

Investors are currently awaiting the US Treasury’s unveiling of the federal budget reading, which may reflect the deficit shrinkage to $ 15.0 billion compared to $ 208.8 billion last November, while the markets are looking for later this week by the US economy to disclose data Inflation and retail sales account for about half of consumer spending, which accounts for more than two-thirds of US GDP.

Otherwise, today, Chinese Vice Prime Minister and head of the Chinese negotiating team in trade talks will travel to Washington for a visit that expires next Wednesday, according to the Chinese Ministry of Commerce. US President Donald Trump and Chinese officials are expected to sign the first stage of the trade deal Waiting for it between the United States and China, which aims to ease trade tensions between Washington and Beijing at the White House on the 15th of this month.

It is noteworthy that the US President's administration invited at least 200 people to the White House to attend the signing ceremony for the first phase of the 86-page trade agreement, the details of which are not yet clear, which raises some doubts about the extent of the deal's coverage and whether the first phase agreement will be fully implemented from The parties accepted, knowing that Washington reserved its right to re-impose customs duties on Chinese products imported to it if it considers that China did not abide by the deal.

Given the global geopolitical developments, it was followed by over the weekend that Iran confessed that it shot down a Ukrainian plane after it had erred in launching a cruise missile, while North Korea announced that it would not give up its nuclear weapons in exchange for lifting sanctions against it, and in another context, we also followed Over the weekend, Taiwan's President Wang Wen beat the overwhelming opponent of China in the main Taiwan elections, to complete his second term.

We would like to point out, because gold prices last week ended their longest weekly gains march in six months with a decline during the previous week for the first time in six weeks, after last Wednesday ended their longest daily gains march in more than three decades after having tested the $ 1,600 per ounce barrier For the first time in seven years, in the wake of reduced concerns about geopolitical tensions in the Middle East, particularly the outbreak of war between the United States and Iran

Technical analysis

The gold price made an attempt to breach the 1556.70 level, but today it begins with a bearish tendency to move below it, which keeps the bearish trend scenario in place for the coming period, supported by the negative crosshair signal presented by the stochastic indicator now, pending the direction towards our main targets that start at 1536.50 and extend to 1519.00.

Note that breaching 1556.70 and holding above it will stop the bearish corrective scenario and lead the price to restore the bullish main path again.

The expected trading range for today is between 1535.00 support and 1565.00 resistance.

Expected trend for today: bearish.