Gold analysis 27.01.2020

Gold price futures fluctuated in a narrow range tilted to a decline during the Asian session after trading began this week on an upward price gap with concern about the rapid spread of the Corona virus to test its highest since January 8, when it tested the highest since March 18 / March 2013 amid the rise of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected today Monday by the US economy, which includes a recorded speech of a member of the Federal Committee and President of the New York Federal Reserve John Williams.

At exactly 03:52 AM GMT, gold price futures for February delivery fell 0.01% to trade at $ 1,558.30 per ounce compared to the opening at $ 1,586.10 per ounce, knowing that the contracts started the trading session on an upward price gap after the week's trades were concluded The past at $ 1,578.20 an ounce, with the US dollar index rising 0.06% to 97.87 compared to the opening at 97.81.

Investors are currently awaiting the presentation of a member of the Federal Committee and President of the New York Federal Reserve Bank John Williams opening remarks in the Puerto Rico Beach program in San Juan, via a pre-recorded video, before we witness the disclosure of the US housing market data with the release of the New Home Sales Index, which may It shows that the growth accelerated to 1.6% or about 731 thousand homes, compared to 1.3% at about 719 thousand homes last November.

This comes hours before tomorrow, Tuesday, the disclosure of the reading of the durable goods orders index, which represents about half of the consumer spending that represents more than two thirds of the gross domestic product in the United States, which may reflect a rise after its decline in November, before the release of the confidence index reading Consumers for the current month, which may reflect a widening from what it was in December.

Up to the start of the activities of the Federal Open Market Committee meeting on January 28-29 in Washington, which is expected to maintain the short-term benchmark interest rates for the third consecutive meeting at between 1.50% and 1.75%, before the press conference to be held. Federal Reserve Governor Jerome Powell half an hour after the FOMC meeting meeting expires on Wednesday.

After that, next Thursday, the markets are looking to reveal the initial reading of the United States’s GDP for the fourth quarter, which may show the fastest growth of the largest economy in the world to 2.2% compared to 2.1% in the third quarter, while the initial reading of the measured GDP may reflect Prices for the last quarter quarter stabilized at a pace of 1.8%, little changed from what it was in the third quarter.

Other than that, we followed Sunday, the Chinese National Health Committee stated that the ability of the coronavirus to spread is getting stronger and that the infection may continue to rise, explaining that there are more than 2,700 confirmed cases of the disease and more than 80 deaths from the deadly virus so far in China This came hours after Chinese President Xi Jinping last Saturday ordered a faster response, and teams have been dispatched to heavily affected areas to enhance prevention and containment.

In the same context, China announced that it will extend the duration of the Lunar New Year holidays that started last Saturday to ten days from a week, specifically until the second of next February, and that schools and universities will return to resume their educational activities from the holidays later than usual, while it announced a city China-ruled Hong Kong will ban entry to people who visited Hubei Province in the past two weeks.

It is reported that the World Health Organization last week considered the Coronavirus, which started in Wuhan, China, as an "emergency in China", after initially expressing that "it is too early to consider this event as a public health emergency of international concern", so that it remains of Before the organization is limited to China and not at the world level, knowing that Canada confirmed its first case, and America announced yesterday the fifth case, and the spread of the virus in more than 15 countries.

Technical analysis

Gold price opened positive trading today to exceed the level of 1575.90 and settle above it, which supports expectations to continue the bullish direction in the intraday and short term, opening the way for heading towards the previously recorded top at 1611.20 as the next main target.

Consequently, the upside scenario will remain valid for the coming period supported by the EMA50, noting that breaking 1575.90 and holding below it may pressure the price to test 1554.10 areas again before any new attempt to rise.

The expected trading range for today is between 1570.00 support and 1600.00 resistance.

Expected trend for today: bullish.