Gold analysis 26.02.2020

Gold price futures fluctuated in a narrow range that tilted higher to witness the resumption of its daily gains marches that stopped yesterday for the first time in nine sessions and to witness its rebound to the second session from the lowest since February 13, condoning the rise of the US dollar index according to the opposite relationship between them on the cusp of developments The economic data expected on Wednesday by the US economy, which includes the talk of members of the Federal Open Market Committee and the center of market assessments of the spread of the Corona virus outside China with fears of becoming a global pandemic.

At exactly 04:02 AM GMT, gold price futures for April delivery rose 0.29% to trade at $ 1,642.00 per ounce compared to the opening at $ 1,637.30 per ounce, knowing that the contracts started the session’s trading on a falling price gap after yesterday’s trading was concluded At $ 1,650.00 an ounce, while the US dollar index rose 0.04% to 99.12 compared to the opening at 99.08.

Investors are currently looking for what will be revealed by the talk of a member of the Federal Open Market Committee and Chairman of the Federal Reserve Bank of Dallas Robert Kaplan at the conference of the emerging director in Austin, before we witness the disclosure of the data of the US housing market from the release of the New Home Sales Index, which may explain 2.7% rise To about 713 thousand homes compared to a decline of 0.4% at about 694 thousand homes last December.

In another context, we have watched the rise of cases infected with Corona virus in South Korea to about a thousand cases compared to about 51 cases just a week ago, and that comes hours after South Korea earlier this week raised the alert status to confront the coronavirus to "the highest level", and the numbers increased The HIV-infected case in Italy is the most affected by Corona outside Asia, where more than 200 cases have been announced, while Iran has confirmed the death of at least 12 people.

We would like to point out, because the Director-General of the World Health Organization noted at the weekend that the outbreak of the Corona virus could still be contained and that the virus is not out of control, especially with the death toll not significantly increasing, explaining that it is too early to describe its spread as a global epidemic, stressing that It is not appropriate to use this description currently and that focus should be placed on efforts to contain it, despite the possibility of it becoming a serious pandemic.

It is noteworthy that the Director-General of the World Health Organization said last Thursday that the decrease in the number of cases infected with Coronavirus outside China "may not remain the same for a long time", and we followed during the weekend, the report that touched on Italy's cancellation of some public events, including the Venice Festival in addition to closing Turkey temporarily borders with Iran and in South Korea, Samsung Electronics closed its factory there due to the spread of the virus.

Technical analysis

Gold price tried to break the level of 1635.20 but maintains its stability above it until now, which keeps the bullish trend scenario in place for the coming period, supported by the positivity of the stochastic indicator that appears on the four-hour time frame, waiting for the breach of 1655.90 to open the way towards the trend towards 1720.00 which represents our main station next.

SMA 50 continues to support the price from below, taking into consideration that breaking 1635.20 will force the price to make more bearish correction and visit 1601.70 areas before any new attempt to rise.

The expected trading range for today is between 1630.00 support and 1665.00 resistance.

Expected trend for today: Overall bullish.