Gold analysis 06.04.2020

Gold price futures fluctuated in a narrow range tilted towards the decline during the Asian session to witness its rebound from above since March 30, while tolerating the US dollar index rebound from above since 26 of the same month, according to the inverse relationship between them amid the scarcity of economic data on Monday from Before the American economy and with the evaluation of markets to the developments of the outbreak of the global virus Corona.

At exactly 04:03 AM GMT, gold price futures for June delivery decreased 0.24% to trade at $ 1,643.80 per ounce compared to the opening at $ 1,647.70 per ounce, knowing that the contracts started the session’s trading on an upward price gap after the week’s transactions ended The past at $ 1,645.70 an ounce, while the US dollar index fell 0.01% to 100.68 compared to the opening at 100.70.

According to the latest developments related to the global health crisis and the outbreak of the Corona virus, deaths in New York State decreased for the first time despite US President Donald Trump's recent warning that the coming period was “painful” for his country, after he recently announced the extension of the quarantine in America until the end of This month to reduce the spread of coronavirus.

Italy also recorded the lowest number of deaths in more than two weeks, France recorded the lowest number in five days and the death toll has decreased in Spain for three consecutive days, while British Prime Minister Boris Johnson was hospitalized for tests after he was infected with the virus for 10 days, according to the latest figures Issued by the organization, the number of cases infected with the virus increased to about 1,137 thousand, and 62,955 people were killed in 208 countries.

Otherwise, the markets are looking to tomorrow after the Federal Reserve to disclose the minutes of the Federal Open Market Committee meeting held on the 15th of March, that surprising meeting of the Federal Reserve, which was the second in less than two weeks after the previous sudden meeting on the third of the same month, which was approved Federal Reserve monetary policy makers return their short-term benchmark interest rates to zero levels.

The members of the Federal Open Market Committee reduced the interest on federal funds at the time by 100 basis points to between zero levels and 0.25%, which remained since 2008 until the meeting of 27-28 October 2015, after reducing them in the previous emergency meeting by 50 points The basis is between 1.50% and 1.75%, and this comes in the wake of the committee members cutting interest three times by 25 basis points in previous meetings last year.

Technical analysis

Gold price trading remains above the $ 1600.00 barrier, and SMA 50 continues to provide positive support for the price, so that the upside scenario remains valid and effective for the coming period, organized within the main bullish channel that appears in the above chart, noting that our positive targets start at 1644.20 and extend to 1703.25 After breaching the previous level.

It should be noted that stability above 1607.70 is a prerequisite for the expected continuation of the upside, as breaking it will put pressure on the price to test the most important support for short term trading at 1578.20 before any new attempt to rise.

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

Expected trend for today: bullish