Gold analysis 07.04.2020

Gold futures rose during the Asian session to witness the highest since November 28, 2012 amid the rebound in the US dollar index for the second session from the top since March 26, according to the inverse relationship between them on the cusp of developments and economic data expected today Tuesday by The American economy and with the evaluation of the markets to the developments of the global outbreak of the Corona virus.

At 04:04 AM GMT, gold futures contracts for June delivery rose 0.21% to trade at $ 1,710.70 per ounce compared to the opening at $ 1,707.10 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,693.90 an ounce, with the US dollar index down 0.18% to 100.56 compared to the opening at 100.74.

Investors are currently awaiting the release of the labor market data by the American economy, with the release of a job reading statistic and job turnover that may reflect a decrease to 6.55 million compared to 6.96 million last January. This comes before we witness the release of a consumer credit reading that may Show growth accelerated to $ 13.9 billion, compared to $ 12.0 billion in January.

It is noteworthy that US President Donald Trump recently warned that the coming period is "painful" for America, after he announced earlier last month that the quarantine would be extended in the United States until the end of this April to limit the spread of the Corona virus, according to the latest figures issued by The organization has increased the number of cases infected with the virus to nearly 1,215 thousand and 67,841 people were killed in 211 countries.

Otherwise, markets are looking to tomorrow, Wednesday, for the Federal Reserve to disclose the minutes of the Federal Open Market Committee meeting that took place 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 that approved the makers The Fed's monetary policy returns short-term benchmark interest rates to zero levels.

Technical analysis

Gold price managed to confirm the breach of 1644.20 after closing the daily candle above it, which supports the continuation of the bullish scenario in an intraday and short term, on the way to head towards the recently recorded top at 1703.25 as the next main target.

Consequently, we are awaiting further increase during the upcoming sessions supported by the EMA50, noting that breaching 1644.20 will put the price under intraday negative pressure aiming to initially test 1607.70 level before any new attempt to rise.

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

Expected trend for today: bullish.