Futures contracts for gold prices fluctuated in a narrow range slanting to rise during the Asian session amid the decline of the US dollar index to its lowest since September 21, according to the inverse relationship between them on the cusp of developments and economic data expected today, Wednesday by the US economy, which includes the speech of members of the Federal Market Committee In the shadow of market pricing, the opportunities for US lawmakers to reach to approve a second stimulus package to support the world's largest economy in the face of the repercussions of the Corona pandemic or not, ahead of the upcoming US presidential elections.
At exactly 05:31 a.m. GMT, gold futures contracts for December delivery rose 0.53% to trade at $ 1,921.70 an ounce, compared to the opening at $ 1,911.60 an ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,915.40 per ounce, with the US dollar index declining 0.17% to 92.91 compared to the opening at 92.07.
Investors are currently awaiting the American economy for what will be revealed by the members of the Federal Reserve Open Market Committee, Deputy Governor of the Federal Reserve Bank Lyle Brainard on economic and monetary policy at an Internet conference hosted by the Association of Professional Economists, before the speech of Cleveland Federal Reserve President Loretta Meester about Monetary Policy in the Virtual Conference of the Association of Total Fiscal and Financing.
Down to the Fed disclosure of the Big Book report, whose importance lies in its being issued two weeks before the FOMC meeting, which is scheduled to be held on the third and fourth of November, that is, in conjunction with the US presidential elections between Republican US President Donald Trump and a candidate Democratic Party Joe Biden, who is currently ahead of the US President forty-fifth in opinion polls.
Other than that, we followed on Tuesday, US President Trump expressed that he would accept an agreement of more than $ 2.2 trillion, stating in an interview with Fox News, "I want it more than the Democrats want," and adding that he expects the approval of the Senate, which will approve the second stimulus package in case Democratic Speaker of the House of Representatives Nancy Blossy and Treasury Secretary Steven Mnuchin reached the final touches for the second stimulus package.
Republican President Trump also noted yesterday, "Not all Republicans agree with me, but they will." We would like to point out that Republicans are members of the Senate and they are a majority in the House, rejecting any stimulus package of up to $ 2 trillion led by Senate Majority Leader Mitch McConnell and would like smaller initiatives. In the same context, Trump stated about McConnell's opposition to the approval of expanded stimulus, "he will accept if there is new."
Technical analysis
The price of gold continues to rise after confirming the consolidation above the level of 1901.80, to activate the bullish trend scenario that aims to visit the level of 1934.86 mainly, systematically inside the ascending channel that appears in the picture, noting that surpassing the mentioned level will extend gold's gains to reach levels 1955.00 then 1967.90 as major stations deification.
Thus, the bullish trend will be expected for the upcoming period, unless the breaching 1901.80 level and holding below it.
The expected trading range for today is between 1900.00 support and 1940.00 resistance.
The expected general trend for today: Bullish.