Gold analysis 13.04.2020

Gold futures fell during the Asian session to witness their bounce for the second session from the top since November 23, 2012 amid the positive stability of the US dollar index for the first time in three sessions according to the inverse relationship between them amid the scarcity of economic data on Monday from most of the major global economies due to Easter holidays and in the wake of the Good Friday holiday.

At exactly 04:04 AM GMT, gold price futures for June delivery fell 0.78% to trade at $ 1,728.80 per ounce compared to the opening at $ 1,742.30 per ounce, knowing that the contracts started the session’s trading on a falling price gap after the week’s trading ended The past at $ 1,752.80 an ounce, with the US dollar index rising 0.01% to 99.45 compared to the opening at 99.44.

Investors in the global financial markets are looking forward to launching the actual results of the season of disclosing the business results of major Asian companies and banks amid an unprecedented state of uncertainty regarding the effects of the global outbreak of the Corona Virus on the performance and returns of companies during the first quarter, and according to the latest figures issued by the World Health Organization has increased The number of infected cases reached nearly 1.7 million, and 106,138 people were killed in 213 countries.

In another context, we watched last Thursday, Federal Reserve Governor Jerome Powell's satellite talk about the US economy at the Brookings Institution, through which he noted that unemployment rates may rise strongly temporarily and that there will be entities that need direct financial support, with his statement that The Federal Reserve has the ability to lend, but it does not have the ability to spend.

Powell also noted at the time that there are signs that the recovery may be strong when it occurs, with the fact that the conditions in the markets have improved in general following the measures taken by the Federal Reserve, and this came in the wake of his assertion that the Federal Reserve still has enough space for Take more action and stimulus to support the world's largest economy.

Powell's comments came hours after the Federal Reserve also unexpectedly announced Thursday that additional 2.3 trillion dollars in loans will be provided to support the economy and that it is working to provide aid to all families and workers in American companies of all sizes, explaining that the debt of high-yielding companies will be purchased in addition to support Government spending, as well as debt of small companies.

Other than that, we followed Thursday, European Central Bank Governor Christine Lagarde expressed the fact that there could be forms of European solidarity, explaining that this could have been done by spending a joint budget or a reconstruction fund, while touching the fact that the value of the euro is stable at the time The current level of the euro is good compared to other currencies.

The European Central Province's Lagarde governorate also reported at the time that the European Central wanted to see high inflation rates and that it would work to ensure the transfer of its policy to the entire euro area, adding that it should not focus only on bonds facing the Coronavirus, and this came in conjunction with the agreement of the European Union finance ministers to A stimulus package worth € 540 billion ($ 590 billion) to combat the economic consequences of the global epidemic.

Technical analysis

Precious metals and oil prices open the week with small-scale movements due to the impact of the financial markets holiday, which keeps the expectations indicated in our reports on Friday effective without any change.

Thus, the bullish trend scenario will remain valid and active during the upcoming sessions, organized within the main bullish channel that appears in the picture, noting the importance of stability above 1644.20 as a first condition for the continuation of the suggested bullish wave.

The expected trading range for today is between 1665.00 support and 1710.00 resistance.

Expected trend for today: bullish.