Gold analysis 28.01.2020

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to witness its bounce for the second consecutive session from its highest since January 8, when it tested its highest since March 18, 2013, condoning the decline in the US dollar index according to the relationship The opposite between them is on the cusp of developments and economic data expected today by the American economy, which includes a recorded talk for a member of the Federal Committee and President of the New York Federal Reserve John Williams and in the shadow of concerns about the rapid spread of the Corona virus.

At exactly 04:17 AM GMT, gold price futures for February delivery fell 0.11% to trade at 1,585.30 per ounce compared to the opening at $ 1,587.10 per ounce, knowing that the contracts started the trading session on an upward price gap after yesterday's trades ended at $ 1,583.70 an ounce, with the US dollar index down 0.01% to 97.94 compared to the opening at 97.95.

Investors are currently awaiting by the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a rise of 1.2% compared to a decline of 2.1% in November, as well A substantial reading of the same indicator may show a 0.4% increase compared to a 0.1% decline in November.

This comes before we witness the disclosure of the US housing market data with the release of the seasonally adjusted reading of the S&P composite of house prices 20 which may reflect slowing growth to 0.3% compared to 0.43% in the previous monthly reading last October, while the reading may appear Annual growth in the same index accelerated to 2.5%, compared to 2.2% in October.

Up to the Federal Reserve Board member and President of the New York Federal Reserve John Williams made the opening remarks on the Puerto Rico Beach program in San Juan, via a pre-recorded video, before revealing the reading of the consumer confidence index, which may appear widening to 128.2 compared to 126.5 in December December, and the Richmond Industrial Index reading, which may reflect a contraction of 3 to 5 in December.

This comes in conjunction with the launching of the FOMC meeting today and tomorrow Wednesday 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%, and amid looking forward to the press conference activities that will be held. Federal Reserve Governor Jerome Powell tomorrow, Wednesday, half an hour after the FOMC meeting ends.

Markets are also looking after tomorrow, Thursday, to disclose the preliminary reading of the gross domestic product of the United States for the fourth quarter, which may show the acceleration of the pace of growth for the largest economy in the world to 2.2% compared to 2.1% in the third quarter, while the initial reading may reflect the GDP measured in prices from Last quarter quarter, the pace of growth stabilized at 1.8%, little changed from what it was in the third quarter.

Otherwise, we followed the report that touched on the fact that the ability of the coronavirus to spread is getting stronger and that the infection may continue to rise and that there are about three thousand cases of the disease and about one hundred deaths from the deadly virus so far in China, and this came hours after the President's order Chinese Shi Jinping last Saturday with a faster response, and teams have been dispatched to the severely affected areas to enhance prevention and containment.

We would like to point out, because China recently 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 February 2, and that schools and universities will return to resume their educational activities from the holidays later than usual, while they 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 maintains its stability above 1575.90 level, which keeps the bullish scenario current and effective for the upcoming period, supported by the moving average 50 that carries the price from below, waiting for visiting the 1611.20 level which represents our next main target.

It should be noted that breaking the 1575.90 level may press the price to drop towards 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.