Gold analysis 11.0.2020

Gold futures fluctuated in a narrow range that tends to decline during the Asian session, to witness its rebound for the second consecutive session from its high since the second of September, overlooking the bounce of the US dollar index for the second session in three sessions from its high on August 12, according to the relationship The opposite occurred between them on the cusp of developments and expected economic data on Friday by the US economy and amid markets ’assessment of the escalation of tensions between Washington and Beijing and the recent tensions between the United Kingdom and the European Union.

At exactly 05:38 a.m. GMT, gold futures contracts for December delivery fell 0.35% to trade at $ 1,947.00 an ounce, compared to the opening at $ 1,953.80 an ounce, knowing that the contracts began trading on a downward price gap after it was concluded Yesterday's trading was at $ 1,964.30 per ounce, while the US dollar index declined 0.07% to 93.27 compared to the opening at 93.34.

Investors are currently awaiting the US economy to unveil inflation data with the release of the consumer price index reading, which may reflect a slowdown in growth to 0.3% compared to 0.6% in July, and the core reading of the same index may also indicate a slowdown in growth to 0.2% compared to 0.6%. The annual core reading of the index may reflect the stability of growth at 1.6%, while the annual core reading of the index may show that growth accelerated to 1.2% versus 1.0%.

Technical analysis

Gold price shows more bearish tendency with today's opening after it succeeded in achieving our first awaited positive target at 1967.90, to reach the pivotal support 1934.86 now, and we note that the price has completed forming a negative combination that may push the price to break the aforementioned support and achieve further decline during the upcoming sessions, while On the other hand, the stochastic oscillator is showing an oversold pattern that supports the strength of the current support areas and chances of a return to the upside.

Therefore, this conflict between technical factors makes us prefer to stay neutral until we get a clearer signal for the next trend, noting that breaking the support 1934.86 will pressure the price to continue the decline and head towards the level of 1901.80 as a next negative target, while the breach of the resistance 1950.50 is the key to resuming the trend. The main bullish one, whose targets start at 1967.90 and extend to 2008.80.

The expected trading range for today is between 1920.00 support and 1970.00 resistance.

The expected trend for today: depends on the levels mentioned in the report.