Powell confirms no intention to raise interest and gold rise

26 Nov 2019 11:56 AM

US Federal Reserve Governor Jerome Powell briefed us on Tuesday morning to confirm that there are no signs that the bank will take any rate hikes in the near term as the export sector continues to be adversely affected by the ongoing trade war. But he also tried to reassure investors by asserting that the current situation does not warrant further rate cuts to support the view that the US dollar will continue to appreciate.
However, we should take into consideration the stability of the US dollar index at the moment near the resistance level at 98.25, which may see some slight decline from those levels slightly before resuming its upward trend again.
Gold continued to decline as risk appetite rose and a preliminary documented trade agreement approached since the beginning of the week. However, gold succeeded in breathing a little, benefiting from the corrections of the US dollar to trade near the levels of $ 1455 an ounce, and gold may return to test the levels of $ 1460 an ounce before resuming its bearish trend again and heading towards the levels of $ 1445 an ounce.
The major stock indices were affected by the rise in risk appetite and the move away from low-yielding assets to rise significantly during yesterday's trading, but started trading today in a state of stability tends to decline slightly to make us expect to see some decline before the resumption of the bullish trend again, where it is expected to The German DAX is testing the bottom barrier of the bullish channel near 13200 levels, while the Dow is expected to rebound from the 28000 resistance level to test 27880 levels before returning back towards 28500.
Aramco managed to raise 21.7 billion riyals on the first day of the IPO to reflect investor optimism about the company in the coming period, but this will be a strong support for the growth of emerging economies and therefore high global demand in the coming period, especially for oil to support the rise towards $ 58.80 a barrel, And then the level is $ 60.
Apple stocks started to rise again near the highs of 267.61 to keep our positive outlook to $ 280. Alibaba shares managed to rise strongly yesterday on the first day of listing on the Hong Kong Stock Exchange to reach the levels of $ 190, and may even reach the levels of $ 200 in the coming period.
Labor opinion polls are back in the lead in the December 12 parliamentary elections, putting pressure on sterling to trade near 1.2874 and making our bearish outlook dominate the coming period, especially as negative data continue to dominate the British economy as uncertainty rises. Investors have fled until they know what will happen and sterling could hit $ 1.28.