Gold Analysis 13.10.2021


Technical reviews

Gold futures fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound to the seventh session in eleven sessions from the lowest since the tenth of August, amid the decline of the US dollar index according to the inverse relationship between them, following the developments and economic data that they followed about the Chinese economy, the largest A global consumer of metals is on the cusp of economic data expected today, Wednesday, by the US economy, the largest economy in the world, which includes the disclosure of the minutes of the latest Federal Reserve meeting.

At exactly 05:53 AM GMT, gold futures contracts for December delivery rose 0.11% to trade at $1,762.30 an ounce, compared to the opening at $1,760.40 an ounce, knowing that the contracts started the session’s trading on an upward price gap after it concluded trading Yesterday at $1,759.30 an ounce, with the US dollar index dropping 0.17% to 94.36 compared to the opening at 94.52.

We followed the Chinese economy, the largest economy in Asia and the second largest in the world, the release of the trade balance reading, which showed a widening of the surplus to 433 billion yuan, equivalent to 66.8 billion dollars, compared to 376 billion yuan, equivalent to 58.3 billion dollars in August, contrary to expectations that She indicated a surplus of 285 billion yuan, equivalent to 46.5 billion dollars, with the acceleration of the growth of exports, contrary to expectations, and the slowdown in the growth of imports, which exceeded expectations during the last month.

On the other hand, investors are currently waiting for the US economy to reveal inflation data with the release of the consumer price index reading, which may reflect the stability of growth at 0.3% during September, while the core reading of the same indicator may indicate an acceleration of growth to 0.2% compared to 0.1% in Last August, the annual reading of the indicator might show stable growth at 5.3%, and the core annual reading might show stable growth at 4.0%.

And this came before we witnessed the Federal Reserve’s disclosure of the minutes of its last meeting, during which the interest rate was kept at its lowest ever, between zero and 0.25%, and the bond purchase program at $ 120 billion, up to the speech of the Vice Governor of the Federal Reserve and a member of the committee Federal Open Marketplace Lyle Brainard on financial inclusion and the economic challenges of the pandemic at a Fed event listening online with Oklahoma tribal leaders.


Technical Analysis


Gold price maintains its stability below the first pivotal resistance 1770.00, to keep the negative pressure valid and likely for the upcoming period, and the price needs to break 1751.00 to facilitate the task of heading towards our awaited first negative target at 1735.00, reminding you that breaking this level will extend the bearish wave to reach 1692.00.

On the other hand, it should be noted that breaching levels of 1770.00 then 1780.00 will stop the suggested negative scenario and lead the price to move to the upside.

The expected trading range for today is between the support 1735.00 and the resistance 1775.00

The forecast general trend for today: Bearish

Author: GC
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