Gold analysis 30.03.2020

Gold price futures fell during the Asian session to witness its bounce back for the third session in four sessions from the top since March 9, when it tested the highest for it since December 18, 2012 amid the US dollar index rebound for the second session from the lowest since 17 of March, according to the inverse relationship between them after US President Donald Trump extended social restrictions in America until the end of next month due to the Corona virus and on the cusp of developments and economic data expected today Monday by the US economy.

At exactly 03:18 AM GMT, the gold futures contracts for June delivery decreased 0.81% to trade at $ 1,650.00 per ounce compared to the opening at $ 1,663.40 per ounce, knowing that the contracts started the session’s trading on an upward price gap after the week’s transactions were concluded The past at $ 1,654.10 an ounce, with the US dollar index rising 0.21% to 98.66 compared to the opening at 98.45.

We have followed a short while ago that US President Donald Trump extended the guidelines for social restrictions in his country until next April 30, as he mentioned that the peak number of deaths due to respiratory diseases may be two weeks away, which strengthened investor anxiety in the global financial markets. The repercussions of the outbreak of the Coruna virus, especially with uncertainty as to how long the world will remain closed due to the spread of the coronavirus.

It is reported that Trump had previously expressed his hope to reopen the American economy by Easter, but the recent widespread expansion of the coronavirus in America prompted him to extend social restrictions on Sunday, which renewed concerns about the feasibility of monetary and global stimulus amid not knowing how long the world will remain COVID-19 mortgage, or media known as corona virus.

This came hours after the British authorities warned that the country's quarantine may last for months and that France extended the quarantine for at least two additional weeks until mid-April. In another context, the International Monetary Fund Director Kristalina Georgieva stated last Friday that the economy The world appears to be entering an economic downturn after the outbreak of the Corona virus and its negative impact on global growth.

In another context, we followed last Thursday, Federal Reserve Governor Jerome Powell expressed the fact that the Federal Reserve still has enough space to take further measures, noting that every dollar support from the Treasury can provide $ 10 of federal loans, adding that The Federal Reserve is ready to provide sufficient liquidity, while stating that the current crisis is not like the usual recession.

Powell also noted at the time that when the Corona virus is controlled, confidence will return to the markets, and then we may witness a good recovery, while stating that the American economy may go through a recession and that the priority is to put the virus under control, explaining that if Corona is controlled, the economy will return to recovery, adding that no There is an error fundamentally in the economy, while expressing its expectations for the economy to recover during the second half, depending on the extent of limiting the spread of the virus.

We would like to note that the Director-General of the World Health Organization, Tidros Adhanum Gebresus, noted last Wednesday the importance of taking precautionary measures such as preventing gatherings, traveling and tracking and monitoring infected cases, in addition to protecting medical and health personnel, especially in poor countries where the virus is easy to spread, and according to the latest figures issued by the organization The number of HIV-positive cases has increased to more than 638,000, and 30,105 people have died in 202 countries.

Otherwise, investors are currently watching the US economy by revealing housing market data with the release of existing home sales, which may show a 1.8% decline compared to a 5.2% increase in January. It is reported that the US House of Representatives voted last Friday unanimously in favor of passing a package A stimulus of $ 2 trillion to support the world's largest economy and American families and companies in the face of the aftermath of the deadly virus.

Technical analysis

The price of gold fluctuates in a lateral path recently and is still below 1633.60, noting that the stochastic has cleared its negative momentum to reach the oversold areas in the sale, waiting for the price to be stimulated to resume positive trades and penetrate the aforementioned level to confirm opening the way to achieving our next target that reaches 1689.30.

Therefore, we will maintain our bullish expectations for the upcoming period supported by the EMA50 that carries the price from below, noting that the expected continuation of the rise requires stability above 1599.10.

The expected trading range for today is between 1600.00 support and 1650.00 resistance

Expected trend for today: bullish