At a time when investor appetite for risk has improved due to the progress achieved in the file of trade negotiations, whether by canceling the customs fees that were supposed to be applied from December 15, or the Chinese Ministry of Finance's affirmation this morning to cancel customs duties on some imports starting from day 20 Next January, the high price of gold continued to succeed in stabilizing above the resistance levels of 1480 dollars per ounce at the end of last week for several reasons, most notably:
1- The World Bank raised its forecast for gold demand in 2020 against the background of increasing reserves of central banks of gold, and the entry of gold into many industries such as electronics, which will be a strong supporter of high prices with most countries in the world going to those industries.
2- The high demand for gold by India and Australia "the second and third largest consumers of gold"
3 - The start of Christmas celebrations and the departure of most of the investors in the world to risk and go to gold until the start of the new year and know what will happen to the situation, whether from Brickett or trade war.
And prices reached with the start of weekly trading to levels of 1485 dollars an ounce, and in the case of stability above those levels we may see it again at levels of 1517 dollars an ounce.
The Dow Jones Industrial Average traded near its historical highs with the progress achieved in the file of trade negotiations at 28500 levels, and despite our positive expectations for the index in the medium term, it may give up some of its gains temporarily as the stochastic index approaches the overbought zone before resuming its rise from new. As for the German DAX, the price rebound from 13300 levels may support its decline to 13200 levels again.
The US dollar rose at the end of the weekly trading on the back of a noticeable improvement in economic data, the latest of which was GDP data and its increase by 2.1% in the third quarter and the rise in personal consumer spending, "a strong measure of inflation" from 1.4% to 1.5%.
This comes at a time when markets are awaiting durable goods orders data, which if it came better than expected, this will spread the spirit of optimism in the hearts of investors and push the US dollar to 98.00 levels again with a willingness not to cut interest in 2020.
Finally, the Canadian dollar witnessed strong declines after the negative data of retail sales, recording the worst decline since its inception by declining by 1.2%. The market is awaiting GDP data during October, which is expected to settle at 0.1%. If it shows any weakness, the Canadian dollar may rise again to 1.3180.
As for the stock markets .. Netflix shares have increased strongly by 3% over the past week with the increase in expectations for improved profits in 2020 after the latest statistics showed that Netflix has met a wide resonance in most developing countries than before to penetrate the stock levels of 335.47 and makes us expect it to continue rising to 380 dollars.