Gold analysis 11.03.2020

Gold futures rose during the Asian session amid the US dollar index rebounding to the eleventh session in fifteen sessions from the top since April 21, 2017, according to the inverse relationship between them on the threshold of developments and economic data expected today Wednesday by the US economy, the largest economy in the world And in light of the investors' evaluation of the incentive aimed at facing the repercussions of the Corona virus on the global economy.

At exactly 04:31 AM GMT, gold price futures for April delivery rose 0.65% to trade at $ 1,660.00 per ounce compared to the opening at $ 1,649.30 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded yesterday's trading At $ 1,660.30 an ounce, with the US dollar index down 0.20% to 96.13 compared to the opening at 96.33.

Investors are looking for the US economy to disclose inflation data with the release of the consumer price index, which may reflect stability at zero levels against 0.1% growth in January, while the fundamental reading of the same indicator may show stability at 0.2% during February. The annual reading of the same index may reflect the slowdown in growth to 2.2% versus 2.5%, and the substantial annual reading of the index may show stability at 2.3%.

This comes before we witness the testimony of the US Treasury Secretary on the budget proposed by the administration of the Republican President Donald Trump for the fiscal year 2021 before the Subcommittee on Foreign Operations and Related Programs in Washington, leading to the disclosure of the US Treasury Department about the reading of the federal budget, which may reflect the breadth The deficit amounted to $ 238.1 billion, compared to $ 32.6 billion in January.

It is reported that US President Trump expressed earlier this week that his administration will discuss a possible salary tax cut with the Congress and that there will be "major" economic announcements, and the White House stated that the proposals aim to reduce taxes on workers ’salaries to zero until the end of the year and the possibility of providing material support to those affected by Corona virus, which has killed more than 4 thousand people around the world, according to the latest figures issued by the World Health Organization.

In another context, we have just followed up with the Australian government announcing a health package worth A $ 2.4 billion ($ 1.56 billion) and stating that it will provide "unprecedented support through primary care, care for the elderly in addition to hospitals, research and the national medical inventory", and this came before To witness the Reserve Bank of Australia’s assertion that any quantitative easing measures it will adopt will focus on “yield targets rather than setting the level of bond purchases.”

In the same vein, we followed yesterday, Japanese Prime Minister Shinzo Abe stated that his government plans to spend $ 4.1 billion as a stimulus package to support the third largest economy in the world to counter the negative effects of the outbreak of the Corona virus, and we would like to point out that this is the second incentive package that Japan will adopt to guide the killer virus within A series of global stimulus coincides with the increase in the number of cases infected with the virus to more than 114 thousand cases around the world.

It is noteworthy that the Director-General of the World Health Organization expressed the past two days that the danger of the Corona virus turning into a global epidemic has become a reality, with his statement 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 And adding that he is optimistic about the strong measures taken by Italy and hopes for positive results of these measures.

Technical analysis

The price of gold begins today's trading with an upward slope after building on the EMA50, noting that the stochastic indicator provides a positive crossover now, which stimulates the price to provide more positive trading today, pending the achievement of our goals that start at 1689.33 and extend to 1735.50 after crossing the previous level .

Consequently, the bullish trend scenario will remain effective for the coming period, organized within the bullish channels that appear in the picture, noting that the continuation of the expected rise requires the stability above 1633.60.

The expected trading range for today is between 1650.00 support and 1690.00 resistance.

Expected trend for today: bullish.