Gold analysis 14.10.2020

Futures contracts for prices fluctuated in a narrow range slanting to rise during the Asian session, to witness their rebound from the lowest since the seventh of October, amid the decline of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected today, Wednesday, by the US economy, the largest economy in the world. Which includes speeches by several members of the Federal Open Market Committee.
 
At exactly 05:29 a.m. GMT, gold futures contracts for December delivery rose 0.25% to trade at $ 1,900.10 an ounce compared to the opening at $ 1,895.40 an ounce, knowing that the contracts started the session on a rising price gap after it closed Yesterday's trading at $ 1,894.60 per ounce, with the US dollar index declining 0.03% to 93.51 compared to the opening at 93.54.
 
In addition, investors are awaiting the US economy the release of the producer price index reading, which is a preliminary indicator of inflation, which may reflect a slowdown in growth to 0.2% compared to 0.4% last August, and the core reading of the same index may also indicate a slowdown in growth to 0.2% compared to 0.3%. While the annual reading of the index may show a growth of 0.2% against a contraction of 0.2%, and the substantive annual reading reflects an acceleration of growth to 0.9% against 0.6%.
 
And this comes before we witness the speech of the members of the Federal Open Market Committee via satellite, each of the Vice Governor of the Federal Reserve, Richard Clarida, who will talk about the economic outlook and monetary policy at the annual meeting of the Institute of International Finance, and Deputy Governor of the Federal Reserve Randall Quarles, who will participate in a panel discussion On financial stability in a seminar hosted by the Systematic Risk Board.
 
All the way to the US Treasury Department's disclosure of the federal budget reading, which may reflect a narrowing of the deficit to a value of $ 123.3 billion compared to $ 200.1 billion in August, before we witness the Federal Reserve Vice Governor Quarles' speech again with a member of the Federal Reserve and Chairman of the Bank of Dallas Federal Reserve Robert Kaplan on Financial Regulation in the Hoover Institution’s Monetary Policy Hypothetical Series.
 

Technical analysis

 
Gold price fluctuates around the support of the bullish intraday channel that appears on the image, and we await a breach of this level to confirm the continuation of the bearish trend in the intraday and short term, where our next negative target is at 1860.90.
 
Therefore, we continue to suggest the bearish trend for the coming period supported by the move below the EMA 50, bearing in mind that breaching 1901.80 will stop the expected decline and push the price to achieve intraday gains targeting 1934.86 again.
 
The expected trading range for today is between 1875.00 support and 1910.00 resistance
 
The expected general trend for today: Bearish