Gold analysis 13.10.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to decline during the Asian session, to witness a rebound for the second consecutive session from its highest since September 21, with the US dollar index rebounding for the second session from its lowest since the same day according to the inverse relationship between them following developments and economic data They were followed by the Chinese economy, the largest consumer of minerals in the world, and on the cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world.

At exactly 05:37 am GMT, gold futures contracts for December delivery fell 0.60% to trade at $ 1,915.80 an ounce, compared to the opening at $ 1,927.30 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,928.90 an ounce, with the US dollar index rising 0.15% to 93.18 compared to the opening at 93.04.

We have followed up on the disclosure of the General Administration of Customs in China of reading the Trade Balance Index, which showed a narrowing of the surplus to a value of 258 billion yuan, equivalent to $ 37.0 billion, against a surplus of 417 billion yuan, equivalent to $ 58.9 billion in August, contrary to the expectations that indicated The surplus widened to 420 billion yuan, equivalent to $ 59.3 billion, with export growth accelerating below expectations and imports rising more than expected during the past month.

On the other hand, investors are currently awaiting the US economy to reveal inflation data with the release of the consumer price index reading, which may reflect a slowdown in the pace of growth to 0.2% compared to 0.4% in the previous reading for August. The core reading of the index itself may also indicate a slowdown. The pace of growth to 0.2%, compared to 0.4% in August.

In the same context, the annual CPI reading may reflect an acceleration of growth to 1.4% compared to 1.3% in the previous annual reading for August, and the core annual reading of the same index also shows an acceleration of growth to 1.8% compared to 1.7%, and comes before We are witnessing the Treasury Department's disclosure of the federal budget reading, which may show the deficit narrowing to $ 62.3 billion compared to $ 200.1 billion in August.

Technical analysis

The price of gold starts trading today with an additional bearish tendency to start testing the 1911.00 level, reinforcing expectations that the bearish trend will continue in the intraday and short term, waiting for further decline in the coming sessions, reminding you that our next target is at 1901.80, whose break represents the key to extending the downside wave to reach 1890.00 Then 1860.90.

Consequently, we will continue to suggest the bearish trend, provided that the price keeps its stability below 1934.86.

The expected trading range for today is between 1890.00 support and 1930.00 resistance.

The expected general trend for today: Bearish.