Gold analysis 10.03.2020

Gold price futures fell during the Asian session to witness their rebound for the second consecutive session from the lowest since December 18, 2012 amid the dollar index rebound to the second session from the lowest since 27 August 2018 according to the inverse relationship between them after the developments and economic data that It was adopted today Tuesday by the Chinese economy, the largest gold producer in the world and the largest consumer of minerals in the world, and amid the scarcity of economic data at the beginning of this week by the American economy, the largest economy in the world and in the shadow of concern about the spread of the Corona virus globally.

At exactly 03:46 AM GMT, gold price futures for April delivery fell 0.72% to trade at $ 1,667.60 per ounce compared to the opening at $ 1,679.60 per ounce, knowing that the contracts started the session’s trading on an upward price gap after yesterday’s trading was concluded At $ 1,675.70 an ounce, with the US dollar index rising 0.04% to 95.38 compared to the opening at 95.34.

On the Chinese economy, we followed the disclosure of inflation data with the release of the annual CPI reading, which showed slowing growth to 5.2%, in line with expectations, compared to 5.4% in January, while the annual reading of the PPI, which is an initial indicator of inflation, resumed marches. Deflation, which stopped for the first time in the eight months of the previous month, with a 0.4% contraction versus 0.1% growth, worse than expectations for a 0.3% contraction.

Otherwise, yesterday we followed US President Donald Trump's press conference on Corona Virus in Washington through which he noted that his administration will discuss a possible salary tax cut with the Congress and that there will be "major" economic announcements Tuesday, and in the same context, Italy added restrictions Travel to the closed northern region. In another context, US Treasury Secretary Stephen Mnuchin has rejected comparisons of the current situation with the financial crisis.

We would like to note that the Director-General of the World Health Organization noted yesterday that the danger of the Corona virus turning into a global pandemic has become a reality, although he expressed that despite this it is still possible to contain the spread of this dangerous virus, explaining that it is strategic that must focus on containing and stopping The spread of the virus, adding that he is optimistic about the strong measures taken by Italy and hopes for positive results of these measures.

Technical analysis

Gold price is trading negatively now on its way to a possible test for pivotal support 1633.60, as the price finds difficulty in surpassing the level of 1689.33, awaiting obtaining a strong positive incentive that supports the chances of achieving the breach and confirming the extension of the upside wave towards our next main target which reaches 1735.50.

In general, the bullish trend scenario will remain valid unless the 1633.60 level is broken and stability below it, as breaking this level will press the price to return to the corrective correctional path again and achieve negative targets that start at 1599.10.

The expected trading range for today is between 1645.00 support and 1690.00 resistance.

Expected trend for today: bullish.