Futures contracts for gold prices fluctuated in a narrow range that tends to rise during the Asian session, overlooking the rebound of the US dollar index for the third session from its lowest since the second of September, according to the inverse relationship between them on the cusp of developments and economic data expected today, Friday, by the US economy and in the shadow of pricing The market for a push and pull exists between the poles of US policy, Republicans and Democrats, over the approval of a second stimulus package to support the largest economy in the world to face the negative repercussions of the Corona pandemic.
At exactly 05:46 a.m. GMT, gold futures contracts for next December delivery rose 0.01% to trade at $ 1,906.60 an ounce, compared to the opening at $ 1,906.50 an ounce, knowing that the contracts started the session on a rising price gap after it was concluded Yesterday's trading was at $ 1,904.60 per ounce, while the US dollar index rose 0.11% to 93.05, compared to the opening at 92.95.
We have followed the actions of the recent presidential outlook on the eve of the upcoming US presidential elections on November 3 between the forty-fifth US president, Republican Donald Trump and Democratic Party candidate Joe Biden, during which the two candidates discussed topics including the response to the Corona pandemic and immigration policy in addition to reforming the system. Health care, national security and many other files.
In another context, the market is looking forward to unveiling the preliminary reading of the Markit Industrial and Service Purchasing Managers Index from the United States of America, which may reflect the shrinking industrial sector expansion in the largest industrial country in the world to a value of 53.5 compared to 53.2 in the previous reading last September. The service sector expanded to a value of 54.7, compared to 54.6 in September.
Other than that, we followed yesterday the Democratic US House Speaker Nancy Pelosi expressing that the agreement on the second stimulus package to face the repercussions of the Corona pandemic is "close to completion", with her warning that passing the bill will take some time and that she is still discussing with the Trump administration, specifically. US Treasury Secretary Stephen Mnuchin settled some outstanding matters.
We would like to point out that the opposition in the Republican-controlled Senate does not want to approve an expanded package before the upcoming US presidential elections and prefers to approve a limited package, which makes, with the passage of time, opportunities for the poles of American politics to reach the ruling Republican Party and the Democratic Party to approve the second stimulus bill to face the repercussions Corona pandemic before the elections is less likely.
Technical analysis
The price of gold stabilizes around 1901.80, and the price finds a strong support ground there, supported by the positivity of the stochastic indicator, which may push the price to start recovery attempts in the intraday term, but we notice that the SMA 50 forms negative pressure against the price, which forms a contradiction between technical factors, Which makes us prefer to remain neutral until the price confirms its position in relation to the aforementioned level and then determines its next destination more precisely.
We point out that a break of 1901.80 and stability below it will confirm the continuation of the decline towards 1880.00 then 1860.90 levels as the next negative stops, while consolidating above it will push the price to start a bullish wave targeting 1934.86 areas again.
The expected trading range for today is between 1885.00 support and 1930.00 resistance.
The expected trend for today: Neutral.