Dollar gains and progress in trade negotiations are putting pressure on gold

25 Nov 2019 11:48 AM

The disappointing euro zone negative data on Friday had a negative impact on the euro, supporting the continuation of the negative view of the currency against most of the major currencies, especially against the US dollar, while increasing the likelihood of the European Central Bank led by Christine Lagarde new stimulus measures as indicated at the time. The first one you are announcing monetary policy last Friday.

EUR/USD is expected to reach 1.10 levels, from which to 1.09. The German DAX rebounded as the Euro retreated to 13280 and our view remains positive at 13400.

This comes at a time when the manufacturing sector in the United States succeeded in recording a recovery for the third month in a row to raise the spirit of hope in the minds of investors that the US Federal Reserve does not take any decisions to cut interest rates again until the end of the year, but that the continued improvement of that data may make the destination The next year rate hike was seen as supporting the continued appreciation of the US dollar.

The rise of the greenback has put pressure on gold on the one hand, on the other hand the absence of any negative comments by trade negotiators in the United States and China and the high risk appetite of the moktmaren with the approaching of a preliminary documented agreement between the parties caused the decline in demand for safe havens, especially gold Low yields to $ 1456 an ounce, but as the Tsochastic approaches the oversold area, we may see the yellow metal shrink some of its losses to retest the $ 1462 an ounce level before resuming its decline back to $ 1445 an ounce.

As investors became more optimistic about a trade deal approaching, oil rose significantly as expectations for higher demand rose in the coming period following a global slowdown that has been dominated by the war for more than 16 years. After strong gains in oil prices, it is expected to give up some of its gains to $ 56.50 a barrel before resuming its rally to 58.90.

Negative data and the continued contraction in the manufacturing and services sectors were also a major reason for the pound to drop sharply before it started its weekly trading session higher as Boris Johnson's Conservative Party led the polls in the December 12 parliamentary elections.

Turning to the stock markets, Apple stocks started the downward correction wave to $ 250 before resuming its rise to the next $ 280. It seems that Amazon's announcement of a full week in black Friday cuts that began from last Friday to the end of this week will be a strong supporter of the rise of stocks to $ 1800 levels in the coming period and boost sales.

As for Alibaba, after the company raised $ 12.9 billion since its listing on the Hong Kong Stock Exchange, which helped raise its market value to $ 445 million, the bullish scenario is expected to continue controlling stocks in the coming period as demand increases to 188 levels. Then $ 195.50.