Gold analysis 10.02.2020

Gold price futures fluctuated in a narrow range tilted toward a decline during the Asian session to witness the resumption of its rebound from its top since January 8, when it tested the highest for it since March 22, 2013, disregarding the rebound in the US dollar index from its highest since October 11 October, according to the inverse relationship between them, following the economic developments and data that we followed today, Monday, on the Chinese economy, the largest consumer of metals globally, and amid the scarcity of economic data earlier this week by the US economy, the largest economy in the world.

At exactly 04:48 AM GMT, gold price futures for April delivery fell 0.06% to trade at $ 1,574.80 per ounce compared to the opening at $ 1,575.80 per ounce, knowing that the contracts started the trading session on an upward price gap after the week's trades were concluded Last at $ 1,573.40 an ounce, while the US dollar index fell 0.07% to 98.63 compared to the opening at 98.70.

We followed the Chinese economy to disclose inflation data with the release of the annual reading of the consumer price index, which reflected the acceleration of growth to 5.4% compared to 4.5% in December, outperforming the expectations that indicated the acceleration of growth to 4.9%, while the annual reading of the producer price index, which An initial inflationary pressure index is 0.1% growth in line with expectations, compared to a 0.5% contraction in December.

Markets are looking to reopen factories and ports in China with the exception of the Hui Province where the Coronavirus has spread, which has killed at least 900 people, most of them in Wuhan, following the lunar New Year holiday that has been extended as part of efforts to contain and combat the spread of the coronavirus that has spread in 27. State, many places of work and schools will likely remain closed and many employees will work from home.

On the other hand, investors are currently awaiting what will come out of the FOMC talk, with Federal Reserve Deputy Governor Michael Bowman later in the day delivering a speech titled "Empowering Community Banks" at the American Bankers Association for Community Banks in Florida, before To see Philadelphia Fed President Patrick Harker speak about the economic outlook at the University of Delaware.

This comes hours before the launch of the activities of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress, where it is expected that Powell will deliver tomorrow, Tuesday, the first half of his half-year testimony about monetary policy before the Financial Services Committee in the House of Representatives, before he makes the day after tomorrow In the second half of his semi-annual testimony about monetary policy before the Senate Banking Committee.

Technical analysis

Gold price succeeded in touching the first target at 1575.90 and stabilizing near it, awaiting the disposal of the negative momentum that appears through the stochastic indicator and obtaining a positive incentive enough to push the price to breach the mentioned level and then opening the way for heading towards the next target that reaches 1611.20.

SMA 50 provides positive support for the price, so we continue to suggest the bullish trend for the next period, noting that breaking 1554.10 will stop the suggested rise and press the price to make more bearish correction.

The expected trading range for today is between 1560.00 support and 1590.00 resistance

Expected trend for today: bullish.