Gold analysis 13.03.2020

Gold price futures fluctuated in a narrow range that tilted higher during the Asian session to witness its rebound from the lowest since March 3, with the dollar index rebounding to the eleventh session in sixteen sessions from the top since April 21, 2017 according to the inverse relationship between them On the cusp of developments and economic data expected on Friday by the US economy and in the wake of US President Donald Trump's speech that did not succeed in allaying investor fears after the World Health Organization announced a global epidemic of Corona virus.

At 05:50 am GMT, gold price futures for April delivery rose 0.35% to trade at $ 1,636.30 per ounce compared to the opening at $ 1,633.10 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,588.30 an ounce, with the US dollar index down 0.40% to 96.27 compared to the opening at 96.66.

Investors are currently awaiting by the US economy the release of the import price index, which may explain a 1.0% decline against stability at zero levels in January, while the annual reading of the same indicator may show a decline of 1.6% against a rise of 0.3%, and this comes before we witness Disclosure of the preliminary reading of the University of Michigan index of consumer confidence, which may show a decrease in value to 95.0 compared to 101.0 last February,

Otherwise, yesterday we followed the press conference held by US President Donald Trump, during which he announced the suspension of all travel to Europe and a number of incentive measures, which included urging Congress to agree to an unspecified measure of salaries tax exemptions, expressing his confidence that America will limit One of the dangers it might pose, but his speech did not give investors the confidence that the United States is tightening its grip on the virus.

In another context, we followed last Wednesday, and US Treasury Secretary Stephen Manuchin expressed during his testimony about the budget proposed by the Trump administration for the fiscal year 2021/2022 before the Subcommittee on Foreign Operations and Related Programs in Washington, that public health is the highest priority for the government. The US is in this budget, with its mention that it has been approved by Congress to allocate $ 8 billion to fight against Corona.

The US Secretary of Finance Manuchin also stated that the International Monetary Fund and the World Bank are committed to providing adequate financial support to tackle the Corona virus, while expressing the fact that the US government aims to provide liquidity and direct financing to small and medium-sized projects and that the fiscal stimulus package will coincide with the reduction of salary taxes, indicating that it will be pumped Hundreds of billions of dollars in the American economy coinciding with tax cuts.

Other than that, we also watched Wednesday the World Health Organization's announcement of the global pandemic virus Corona, the Director-General of the World Health Organization at the time, “We are very concerned about the spread, hidden danger, and worrying levels of inaction,” adding, “We sounded the alarm loudly and clearly,” according to another Figures released by the organization have increased the number of cases infected with the virus to more than 125 thousand and 4,614 people were killed in 118 countries.

Technical analysis

Gold coherence above the support of the main bullish channel that appears in the image after the sharp decline witnessed yesterday, and begins attempts to recover now, indicating the price trend to achieve potential gains today, waiting for trading positively during the upcoming sessions, noting that the expected targets begin to penetrate 1599.10 levels Then 1633.60 to confirm the continuation of the main bullish wave.

Thus, we will continue to favor the overall bullish trend, noting that a break of 1555.00 will stop the positive scenario and put pressure on the price to incur more losses in the short and medium term.

The expected trading range for today is between 1570.00 support and 1610.00 resistance.

Expected trend for today: bullish.