Gold futures rose about 1 percent in corrective operations during the Asian session after its worst daily performance since January 20 of 2013 and to reflect its rebound to the second session from its lowest since July 22, with the US dollar index resuming its rebound from the top He has since September 28 for the third session in five sessions according to the inverse relationship between them.
This comes on the heels of the economic developments and data that they followed on the Chinese economy, the largest consumer of minerals in the world, and on the cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world, which includes the speech of members of the Federal Open Market Committee and amid optimism about the effectiveness of the joint vaccine for Pfizer and Biontech In the prevention of coronavirus by 90% for those who have not previously been infected with the virus.
At exactly 05:44 am GMT, gold futures contracts for December delivery rose 0.95% to trade at $ 1,881.80 an ounce, compared to the opening at $ 1,864.10 per ounce, knowing that the contracts started the session on an upward price gap after trading concluded Yesterday at $ 1,854.40 per ounce, with the US dollar index declining 0.21% to 92.64 compared to the opening at 92.84.
We have followed up on the Chinese National Bureau of Statistics disclosing inflation data with the release of the annual consumer price index reading, which showed the slowdown in growth to 0.5% compared to 2.4% last September, worse than the expectations that indicated a slowdown in growth to 0.8%, as for the annual reading of the index. Producer prices showed that the deflation had stabilized at 2.1% over the past month, contrary to expectations that indicated a contraction of the deflation to 1.9%.
On the other hand, investors are currently awaiting the American economy to release a statistical reading on employment opportunities and job turnover, which may reflect an increase to about 6.50 million compared to about 6.49 million last August, and this comes in the wake of the labor market data showed at the end of last week, a decline The unemployment rate came to 6.9% from 7.9% in September, surpassing expectations for a decline to 7.7% at the time.
In the same context, last Friday's reading of the employment change index for sectors other than agricultural showed about 638,000 jobs added compared to 672,000 added jobs, which was revised from about 661,000 jobs added in September, while the average hourly income index reading reflected the growth of 0.1% versus zero levels in September, contrary to expectations for 0.2% growth.
Down to the Fed's Deputy Governor and Federal Open Market Committee member Randall Quarles testifying about overseeing the Securities and Exchange Commission before the Senate Banking Committee in Washington, before we witness his counterpart, Deputy Governor of the Federal Reserve and Federal Committee member Lyle Brainard, on the Community Reinvestment Act. At an online event hosted by the National Congress of the Amerindians.
On the other hand, we followed yesterday the statement of the World Health Organization, which touched on the fact that the arrival of the Corona vaccine may completely change the situation by the end of the year, especially 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, with the report that the Corona vaccine needs $ 4.5 billion to be ready by early next year.
Technical analysis
The price of gold found strong support at the level of 1860.90, as it withstood the strong decline that the price witnessed yesterday, to bounce up and head towards compensating for the losses it incurred in the past sessions, on its way to visit the levels of 1901.80 and then 1934.86 initially.
Consequently, we expect to witness positive trading today, supported by the positivity of the stochastic indicator, bearing in mind that breaking 1860.90 and holding below it will stop the suggested rise and pressurize the price to incur more losses in the short term.
The expected trading range for today is between 1860.00 support and 1910.00 resistance
The expected general trend for today: Bullish