Gold analysis 17.11.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound to the fifth session in seven sessions from its lowest since July 22, overlooking the positive stability of the US dollar index according to the inverse relationship between them on the cusp of developments and expected economic data today, Tuesday, The US economy was the largest in the world, and in the shadow of market pricing due to the positive results of Corona vaccines, against the outbreak of the second wave of the coronavirus globally, especially in Europe and the United States.

At 06:11 a.m. GMT, gold futures contracts for next December delivery rose 0.01% to trade at $ 1,888.30 per ounce, compared to the opening at $ 1,888.20 per ounce, knowing that the contracts started the session on a rising price gap after trading concluded Yesterday, at $ 1,887.80 an ounce, while the US Dollar Index rose 0.04% to 92.51 compared to the opening at 92.47.

Investors are awaiting the American economy to unveil the retail sales index, which represents about half of consumer spending, which accounts for more than two-thirds of the United States' GDP, and which may reflect slowing growth to 0.5% compared to 1.9% last September, as it may appear. The core reading of the same index slowed growth to 0.6%, compared to 1.5% in September.

This comes in conjunction with the release of the import price index reading, which may indicate a slowdown in growth to 0.2% compared to 0.3% in September, and before we witness the largest industrial country in the world disclosing industrial sector data with the release of the Industrial Production Index, which may reflect a rise of 1.1. This was compared to a decrease of 0.6% in September, in conjunction with the index reading of the energy utilization rate, which showed an increase to 72.3%, compared to 71.5% in September.

Up to the disclosure of housing market data with the release of the housing index reading by the National Association of Home Builders, which may reflect stability at a value of 85, with little change from what it was in the previous reading for last October, coinciding with the release of the final reading of the index Wholesale inventories, which may indicate an acceleration of growth to 0.5%, compared to 0.3% last August.

Technical analysis

Gold price continues to fluctuate around 1890.00 since yesterday, and the price needs to stabilize above this level to keep the bullish trend scenario valid and effective, waiting for a positive stimulus to push the price to breach the 1901.80 level to open the way to rally towards 1934.86, which represents our next positive target.

Consequently, we will maintain our bullish expectations, provided that it remains above 1890.00, noting that breaking this level will pressure the price to test 1860.90 areas again before any new attempt to rise.

The expected trading range for today is between 1875.00 support and 1920.00 resistance

The expected general trend for today: Bullish