Gold analysis 08.01.2020

Gold futures rose during the Asian session to witness the highest since March 22, 2013, condoning the rise of the US dollar index according to the inverse relationship between them on the threshold of developments and economic data expected today Wednesday by the US economy, the largest economy in the world, and with markets pricing the growing tensions in The Middle East between Tehran and Washington, against the backdrop of the recent American air raid in the Iraqi capital, Baghdad, that resulted in the assassination of the commander of the Quds Force in the Iranian Revolutionary Guard, Qassem Soleimani.

At exactly 04:45 am GMT, gold futures for February delivery rose 0.94% to trade at $ 1,593.70 per ounce compared to the opening at $ 1,578.80 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,574.30 an ounce, while the US dollar index rose 0.11% to 96.94 compared to the opening at 96.83.

Investors are currently looking for the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of the pace of job creation to 160 thousand added jobs compared to 67 thousand added jobs in November, and that comes before we witness Deputy Governor of the Federal Reserve Bank and member of the Federal Open Market Committee for Elle Brenard delivered a speech titled "Modernizing the Community Reinvestment Act" at the Urban Institute in Washington.

Otherwise, we followed a short while ago the Pentagon stated in a statement that "Iran launched more than ten ballistic missiles against American and coalition forces in Iraq, and it is clear that these missiles were launched from Iran and targeted at least two military bases hosting military and personnel from The coalition forces in Assad and Erbil, "which reinforced concern about the growing tensions between Washington and Tehran and the outbreak of war between them.

It is reported that US President Donald Trump expressed last Monday that he would not allow Iran to possess nuclear weapons, and this came after Tehran announced Sunday that it will no longer adhere to the limits of uranium enrichment set forth in the 2015 nuclear agreement, which Washington withdrew unilaterally in 2018, as Trump threatened Recently, 52 sites in Iran were destroyed, including military, cultural, and strategic sites, if Iran threatened its country’s interests in the Middle East.

On the other hand, we followed at the weekend of the Chinese newspaper, the Global Times, that the timing of the trade agreement between Washington and Beijing is not important and that the actual content of the first stage of the agreement and how it is implemented is the most important at the present time, and this came in conjunction with the report that touched on the fact that a Chinese trade delegation He plans to travel to the United States by next Monday to sign the first stage trade agreement next week.

It is reported that US President Trump announced last week, through his Twitter account via his official account on Twitter, that he will sign the first phase of the trade agreement with China on January 15 in the White House, stating that a high-level delegation will come from China to Washington to complete the agreement, adding that he would later go to China to start talks on the second phase of the trade agreement.

His Trump speech came in the wake of the report that touched on early last week that Chinese Vice Premier and Chief Commissioner Liu He would later head a high-level Chinese delegation to Washington, which strengthened expectations that it would be the one who would sign the first stage of the trade agreement. Between the United States and China, while the uncertainty surrounding the details of the agreement remains.

We would like to point out, because gold prices currently reflect the longest paths of daily gains for them in more than three decades with their rise for the eleventh day in a row, as well as the longest marches reflecting their weekly gains in six months with their rise for the sixth consecutive week during this week, after the expansion of central banks The major global policy of monetary easing and quantitative easing, including rate cuts, as well as geopolitical tensions.

Technical analysis

The price of gold opened today with a strong rise to approach our awaited target at 1617.00, and some bearish bias now appears affected by the stochastic negativity, pending the resumption of the upside that extends its objectives to reach 1675.00 in the near term.

Consequently, we will maintain our positive expectations for the coming period unless the 1556.70 level is broken and stability below it, noting that the demand for gold is rising due to political and military tensions in the Middle East.

The expected trading range for today is between 1575.00 support and 1620.00 resistance.

Expected trend for today: bullish.