Gold analysis

Futures contracts for gold prices fluctuated in a narrow range that tends to decline during the Asian session, to witness its rebound to the fourth session in six sessions from its highest since August 19, overlooking the bounce of the US dollar index from its high on the 12th of the same month according to the inverse relationship between them.

This comes after the economic developments and data they followed on the Chinese economy, the largest consumer of minerals in the world, and on the cusp of economic developments and data expected today, Wednesday, by the US economy, the largest in the world, and amid the successive escalation of tensions between Washington and Beijing, tensions between the United Kingdom and the European Union, in addition to fears of a second wave outbreak. Of the Coronavirus, especially with no coronavirus vaccine yet.

At exactly 05:30 am GMT, gold futures contracts for December delivery fell 0.12% to trade at $ 1,937.10 per ounce, compared to the opening at $ 1,939.40 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading was at $ 1,943.20 per ounce, while the US dollar index fell 0.07% to 93.47 compared to the opening at 93.54.

We have followed the disclosure of the Chinese National Bureau of Statistics on inflation data with the release of the annual consumer price index reading, which showed the slowdown in growth to 2.4%, in line with expectations, compared to 2.7% in the previous annual reading for the month of July. As for the annual reading of the producer price index, it showed Deflation narrowed to 2.0% from 2.4% in July, contrary to expectations that had indicated a contraction of 1.9%.

On the other hand, investors are currently awaiting the American economy to release a statistical reading on employment opportunities and job turnover, which may reflect an increase to about 6.05 million compared to about 5.89 million last June, and this comes in the wake of the labor market data showed at the end of last week, a decline The unemployment rate fell to 8.4%, compared to 10.2% last July, surpassing the expectations that indicated a decline to 9.8%.

In the same context, last Friday's reading of the employment change index for sectors other than agricultural showed about 1,371,000 jobs added compared to 1,734,000 added jobs, which was revised from about 1,763,000 jobs added in July, while the average hourly income index reading reflected an acceleration Growth to 0.4% versus 0.1%, contrary to expectations that indicated stability at zero levels.

On the other hand, we followed yesterday the report that touched upon the fact that Washington is studying the imposition of new restrictions on Chinese imports, especially imports of cotton and tomato products from Xinjiang province in western China against the background of allegations of human rights violations within the region, and we also followed yesterday the report that dealt with the fact that the Chinese government has imposed new restrictions The American visas target journalists working for American institutions and organizations inside China.

Technical analysis

Gold price found strong resistance at the broken support of the main ascending channel that appears on the image, to rebound downwards from there, on its way to present new expected negative trades during the upcoming sessions, heading towards a possible test of 1901.80 mainly.

Thus, the bearish bias will remain likely today, supported by the negative pressure formed by the moving average 50, in addition to the negative crossover signal that appears through the stochastic indicator, bearing in mind that breaching 1934.86 then 1942.00 will stop the expected decline and lead the price to restore the main bullish trend again...

The expected trading range for today is between 1900.00 support and 1945.00 resistance.

The expected general trend for today: Bearish.