Futures contracts for gold prices fell by nearly 1 percent during the Asian session to witness the lowest since the second of July, to prepare for its fourth consecutive monthly losses, overlooking the decline of the US dollar index to its lowest since late April 2018 according to the inverse relationship between them following developments and data Economic data that they followed from the Chinese economy, the largest consumer of minerals in the world and on the cusp of economic developments and data expected Monday by the US economy, the largest economy in the world.
At exactly 05:54 am GMT, gold futures contracts for February delivery fell 0.89% to trade at $ 1,775.00 per ounce, compared to the opening at $ 1,790.80 per ounce, knowing that the contracts started the session on a rising price gap after the week’s trading ended. Last at $ 1,788.10 an ounce, while the US dollar index fell 0.05% to 91.71 compared to an opening at 91.76.
We also followed up on the disclosure of the China Federation of Logistics and Procurement (CFLP) of the industrial and service sector data for the past month, which indicated that the industrial sector expanded to a value of 52.4 compared to 51.4 in October, surpassing expectations that indicated an expansion of 51.6, and the expansion of the service sector to what Its value was 56.4 compared to 56.2 in October, also beating expectations for a contraction of the breadth to 56.0.
On the other hand, investors are currently awaiting the US economy, the largest industrial country in the world, to unveil the industrial sector data with the release of the Chicago PMI reading, which may reflect a contraction of the expansion to 59.4 compared to 61.1 in October, before the disclosure of data Housing market with the release of the Existing Home Sales reading, which may show a rise of 1.1% versus a decline of 2.2% in September.
Other than that, markets are looking forward tomorrow, Tuesday, and the day after tomorrow, Wednesday, to Fed Governor Jerome Powell’s testimony about the “CARES” Act before the US Congress, both houses of the House and Senate in Washington. Earlier this month, Treasury Secretary Stephen Mnuchin sent a message to the Fed Governor. Powell suggested that the $ 455 billion allocated to the Treasury under the CARES Act should be available to Congress for reallocation.
Gold price opened today’s trading with an additional strong decline, to succeed in touching our awaited target at 1765.00, and face more negative pressure that encourages us to favor the continuation of the downside movement during the coming period, paving the way for heading towards 1691.85 areas as a next major station.
Consequently, the bearish trend will remain dominant in the intraday and short term, taking into account that failure to break 1765.00 will lead the price to start recovery attempts targeting the initial testing of 1794.84 areas before any new attempt to decline.
The expected trading range for today is between 1750.00 support and 1785.00 resistance
The expected general trend for today: Bearish