Gold analysis 27.02.2020

Gold price futures fluctuated in a narrow range tilted to the upside during the American session amid the US dollar index rebounding for the fourth session in six sessions from the top since April 21, 2017 according to the inverse relationship between them on the cusp of developments and economic data expected today Thursday by the American economy This includes the talk of a member of the Federal Open Market Committee and the market’s assessment of the spread of the Corona virus outside of China.

At exactly 04:09 AM GMT, gold price futures for April delivery rose 0.57% to trade at $ 1,652.40 an ounce compared to the opening at $ 1,643.00 per ounce, with the US dollar index falling 0.05% to 98.97 compared to the opening at 99.02.

Investors are currently awaiting by the US economy the disclosure of the second reading of GDP, which may reflect the widening of the largest economy in the world 2.1% during the fourth quarter, little changed from the previous initial reading, as the second reading of GDP measured by prices may show stability of growth at Also 1.4%, little change from what it was in the previous preliminary reading of the previous quarter.

This comes in conjunction with the disclosure of 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 1.5% decline compared to a rise of 2.4% in December, while a substantial reading may appear The same index rose 0.2%, compared to a decline of 0.1% in December.

This is also in conjunction with the issuance of the index of subsidy requests for the past week on February 15th, which may reflect an increase by one thousand requests to 211 thousand requests compared to 210 thousand requests in the previous weekly reading, up to the disclosure of housing market data with the release of home sales reading The list, which may show a rise of 2.8% compared to a decline of 4.9% in December.

This comes before we witness the member of the Federal Open Market Committee and President of the Federal Reserve Bank of Cleveland Loretta Mester the opening speech at the symposium "Women in the Economy" in Cleveland otherwise, we followed yesterday US President Donald Trump's attempt to allay investor concerns about the spread of the Corona virus and this came in conjunction With the announcement of health authorities in the United States to monitor the first case of HIV, he did not know how to be infected.

Technical analysis

Gold price starts trading today positively after consolidation above the level of 1635.20, to approach the test of 1655.90, and gets positive support from the EMA50 and stochastic to enhance the chances of breaching the last level and then open the way for heading towards our next target which reaches 1720.00.

Thus, the bullish trend scenario will remain valid and active for the upcoming period, noting the importance of holding above 1635.20 to achieve the expected targets.

The expected trading range for today is between 1635.00 support and 1670.00 resistance.

Expected trend for today: Overall bullish.