Futures contracts for gold prices fluctuated in a narrow range slanting to an upward trend during the Asian session, to witness its retracement of the third session from its lowest since July 17, overlooking the decline of the US dollar index and its stability near its lowest since the beginning of September, when it tested the lowest since late April 2018 according to the inverse relationship between them, amid a scarcity of economic data on Friday by the US economy.
At exactly 05:10 am GMT, gold futures contracts for next February delivery rose 0.04% to trade at $ 1,812.80 per ounce, compared to the opening at $ 1,812.10 per ounce, knowing that the contracts started the session on a rising price gap after yesterday's trading was concluded At $ 1,811.20 an ounce, amid the US dollar index retreating 0.11% to 91.92 compared to the opening at 92.02.
Later next week, markets are looking forward to Fed Governor Jerome Powell's testimony about the "CARES" Act before the US House of Representatives Financial Services Committee in Washington, and it is reported that Treasury Secretary Stephen Mnuchin sent a message last week to Fed Governor Powell stating that the amount is 455. The $ 1 billion allocated to the Treasury under the CARES Act must be available to Congress for reallocation.
Last week, we followed up on the Federal Reserve’s statement, in which it stated that it “prefers that the entire group of emergency facilities that were established during the Corona pandemic continue to play their important role as a support for our economy, which is still suffering from stress and weakness,” and this came within the Fed’s work to reassure financial markets. And investors that credit will remain available to help companies, local agencies and even non-profit organizations during the pandemic.
We would like to point out that some recent report indicates the possibility that the Federal Reserve will expand the adoption of monetary stimulus during the next December meeting, especially after announcing that it will comply with the Treasury Department's request to return unused funds. Otherwise, investors are also looking forward to later next week to The disclosure of the US labor market data for the month of November.
It is noteworthy that the Federal Reserve revealed last Wednesday the minutes of the meeting of the Federal Open Market Committee held on November 4-5, during which monetary policy makers decided to maintain interest rates at their lowest rates ever, between zero and 0.25% amid Emphasizing the importance of the fiscal stimulus policy to support the economy and discussing the possibility of increasing asset purchases to support the economy in its recovery from the Corona pandemic.
Technical analysis
The narrow range controls gold price trading in the past sessions, and therefore, there is no change to the scenario of the expected downside trend for the coming period, whose targets start at 1794.84 and extend to 1765.00 after surpassing the previous level, with a reminder of the importance of stability below 1819.00 and 1830.00 levels for the continuation of the expected negative scenario.
The expected trading range for today is between 1780.00 support and 1825.00 resistance
The expected general trend for today: Bearish