Gold analysis 09.11.2020

Futures contracts for gold prices fluctuated in a narrow range sloping to an upward trend during the Asian session, to witness the highest since September 18, with the US dollar index dropping to its lowest since the beginning of the same month, when the lowest was tested since late April of 2018 according to the inverse relationship Between them, amid scarce economic data on Monday by the US economy, the largest in the world.

At exactly 05:53 am GMT, the futures contract for gold prices for next December delivery rose 0.44% to trade at $ 1,964.70 per ounce, compared to the opening at $ 1,956.00 per ounce, knowing that the contracts started the session on a rising price gap after trading concluded Last week, at $ 1,951.70 per ounce, with the US dollar index declining 0.07% to 92.17 compared to the opening at 92.24.

Investors are currently awaiting the US economy what will be revealed by a member of the Federal Open Market Committee and President of the Cleveland Federal Reserve, Loretta Meester, at a virtual financial technology conference hosted by the Philadelphia Federal Reserve, and it is mentioned that the Federal Reserve last week maintained interest rates for the sixth meeting on The succession is at its lowest level, between zero and 0.25%.

Other than that, we watched over the weekend that Democratic candidate Joe Biden won in the US presidential elections 290 electoral votes, more than 270 votes, to win the elections and for the forty-sixth US president to succeed Republican US President Donald Trump, whose term ends on 20 of Next January, which until now has not admitted his defeat, claiming that it is "not over" and is studying the legal procedures for recounting the votes in some US states where he did not exceed his defeat by one percent against Biden.

Technical analysis

Gold price shows more bullish tendency to approach the awaited target at 1967.90, and by looking closely at the chart, we find that the price has completed forming a double bottom pattern with positive targets extending to 2008.80, which means that the price is on its way to surpass the first level and achieve more potential gains during Next sessions.

Consequently, we will continue suggesting the bullish trend in the intraday and short term, supported by the MA 50, noting that breaking 1934.86 will stop the suggested ascend and pressure the price to turn towards the downside.

The expected trading range for today is between 1940.00 support and 1990.00 resistance

The expected general trend for today: Bullish