Gold analysis 12.11.2020

Gold futures fluctuated in a narrow range that tends to rise, to witness its rebound to the second session in four sessions from its lowest since July 22, overlooking the bounce of the US dollar index for the third session in four sessions from its lowest since the beginning of September, when the lowest was tested Since late April 2018, according to the inverse relationship between them on the cusp of developments and economic data expected today, Thursday, by the US economy, the largest economy in the world, which includes a speech by Federal Reserve Governor Jerome Powell.
 
At exactly 05:35 a.m. GMT, gold futures contracts for next December delivery rose 0.28% to trade at $ 1,869.20 an ounce compared to the opening at $ 1,863.90 per ounce, knowing that the contracts started the session on a rising price gap after trading concluded Yesterday at $ 1,861.60 an ounce, while the US Dollar Index rose 0.01% to 93.03 compared to an opening at 93.02.
 
Investors are expecting the US economy to see the release of the aid requests index reading for the past week on the seventh of November, which may reflect a decrease of 21 thousand requests to 730 thousand applications compared to 751 thousand applications in the previous reading, and the reading of continuous aid requests for last week may also appear. At the end of October, a decrease of 385 thousand applications decreased to 6.9 million, compared to 7,285 thousand applications in the previous reading.
 
This comes in conjunction with the disclosure of inflation data with the release of the consumer price index reading, which may reflect a slowdown in growth to 0.1% compared to 0.2% last September, while the core reading of the same index may indicate the stability of growth at 0.2%, and the annual reading of the index may show itself. Growth slows to 1.3% from 1.4%, while the annual core reading of the index may reflect an acceleration of growth to 1.8% from 1.7% in September.
 
Up to the participation of Federal Reserve Governor Jerome Powell with each of the European Central Bank Governor Christine Lagarde and Bank of England Governor Andrew Bailey in a satellite panel discussion entitled "Central Banks in a Changing World" at the European Central Bank Forum, before we witness later the Treasury's disclosure The US reported a reading of the federal budget, which may reflect a widening deficit to $ 274.0 billion, compared to $ 124.6 billion in September.
 
On the other hand, we followed earlier this week the statement of the World Health Organization, which mentioned that the arrival of the Corona vaccine may completely change the situation by the end of the year, especially that the very positive results of the third phase of clinical trials of the vaccine produced by the American company Pfizer in cooperation with the German company Biontech, which was announced Monday, it reached 90%, with the report that the Corona vaccine needs $ 4.5 billion to be ready by the beginning of next year.

Technical analysis

 
Gold price maintained its stability above 1860.90 after the strong negative pressure that it witnessed yesterday, which keeps our bullish expectations valid and effective for the upcoming period, supported by the positivity of the stochastic indicator, waiting to head towards levels of 1901.80 then 1934.86 as initial positive targets.
 
On the other hand, we note that the price forms a double bottom formation from the current areas to support expectations of achieving gains during the upcoming sessions, noting that breaking 1860.90 will nullify the proposed structure and stop the expected positive scenario, putting the price under new negative pressure targeting the direction towards 1794.84 areas in the near term.
 
The expected trading range for today is between 1855.00 support and 1900.00 resistance
 
The expected general trend for today: Bullish