GOLD analysis 07.02.2020

Gold price futures fluctuated in a narrow range tilted to a decline during the Asian session to witness the resumption of its rebound from its top since January 8, when it tested its highest since March 22, 2013, disregarding the rebound of the US dollar index for the second session of its highest Since October 15, according to the inverse relationship between them, on the cusp of developments and economic data expected Friday by the Chinese economy, the largest consumer of metals globally, and its US counterpart, the largest economy in the world.

At exactly 04:12 AM GMT, gold price futures for April delivery decreased 0.03% to trade at $ 1,570.30 per ounce compared to the opening at $ 1,570.70 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,570.00 an ounce, while the US dollar index fell 0.02% to 98.46 compared to the opening at 98.46.

Investors are currently awaiting by the Chinese economy to reveal the reading of the trade balance index, which reflects a shrinking surplus to a value of 306 billion yuan, equivalent to $ 36.8 billion compared to 329 billion yuan, equivalent to $ 46.8 billion in December, and this follows In the middle of last month, China and the United States signed the first stage of the trade agreement, and in the shadow of the outbreak of the Coronavirus, which started in Wuhan, China.

On the other hand, we have just followed the talk of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve Randall Quarlis about monetary policy and economic expectations at New York University, and this came amid the markets' aspiration to reveal the data of the American labor market last month, which may reflect the stability of unemployment rates at The lowest in five decades at 3.5% for the third month in a row.

In the same context, investors are also looking to the US economy for the release of the employment change index for sectors other than agriculture, which may reflect the acceleration of the pace of job creation to 163,000 jobs compared to 145,000 jobs last December, as the average income index reading in The hour, growth accelerated to 0.3% versus 0.1%. This is before the final reading of the wholesale stocks index, which may explain the stability of the decline at 0.1%.

Technical analysis

The gold price fluctuates around the EMA50, and may witness some temporary bearish slopes with the effect of the stochastic negative, waiting for a positive momentum sufficient to push the price to continue the main bullish trend.

In general, we continue to favor the bullish trend with price stability above 1554.10 level, as breaking this level will press the price to make more bearish correction in the intraday basis, while our positive targets start at 1575.90 and extend to 1611.20 after crossing the previous level.

The expected trading range for today is between 1554.00 support and 1580.00 resistance.

Expected trend for today: bullish.