Gold analysis 10.01.2020

Gold price futures fluctuated in a narrow range tilted toward decline during the Asian session, to witness its bounce for the third consecutive session from the top since March 22, 2013, while neglecting the negative stability of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected on Friday from Before the American economy and in the shadow of the pricing of the markets to calm the tensions between Washington and Tehran, coinciding with the fact that the signing of the United States and China on the first stage of the trade agreement is around the corner.

At exactly 03:51 AM GMT, gold price futures for February delivery fell 0.35% to trade at $ 1,548.00 per ounce compared to the opening at $ 1,553.40 per ounce, knowing that the contracts started the session’s trading on a falling price gap after yesterday’s trading was concluded At $ 1,554.30 an ounce, while the US dollar index fell 0.02% to 97.42 compared to the opening at 97.44.

Investors are currently awaiting by the US economy the disclosure of labor market data for the past month, which may reflect the stability of unemployment rates at the lowest in five decades of time at 3.5%, while a reading of the employment change index for sectors other than agriculture may show a slowdown in the pace of job creation to 162 One thousand jobs compared to 266 thousand jobs, and a reading of the average hourly income index may indicate an acceleration of growth to 0.3% compared to 0.2%.

Otherwise, we followed yesterday, US President Donald Trump expressed that the signing of the second stage of the trade agreement might be postponed until after the presidential elections, while emphasizing that he will begin negotiations with China about the second stage after signing the first stage next Wednesday, and this came after it reported The Chinese Ministry of Commerce said that Chinese Vice Premier Liu Hu will go to Washington next Monday to sign the first phase of the trade agreement.

We would like to point out, since the price of gold ended last Wednesday its longest daily gains march in more than three decades after it tested a $ 1,600 per ounce barrier for the first time in seven years, and is currently preparing to end its longest weekly gains march in six months with a decline during the current week for the first Once in six weeks, in the wake of reduced concerns about geopolitical tensions in the Middle East, especially the outbreak of war between the United States and Iran.

Technical analysis

Gold price confirmed the breaking of 1556.70 level after the daily candle closed below it, to open the way for the continuation of the decline during the upcoming sessions, where we expect to target 1519.00 then 1495.00 levels as the next major stops.

Thus, a bearish bias will be expected for today, taking into consideration that breaching 1556.70 and holding above it again will reactivate the main bullish trend scenario whose next target is located at 1617.00.

The expected trading range for today is between 1530.00 support and 1560.00 resistance.

Expected trend for today: bearish.