Gold analysis 14.04.2020

Gold futures rose during the Asian session to witness the highest since October 5, 2012, when I tested the highest for them since the ninth of November 2011 amid the decline in the US dollar index according to the inverse relationship between them after the developments and economic data that we followed today from The Chinese economy is the largest consumer of metals globally and on the cusp of developments and economic data expected by the US economy, the largest economy in the world.

At exactly 04:10 AM GMT, gold futures for June delivery rose 1.08% to trade at $ 1,780.50 per ounce compared to the opening at $ 1,761.50 per ounce, knowing that the contracts achieved their highest in eight years during the trading session at 1,785.00 levels $ Per ounce, with the US dollar index down 0.20% to 99.18 compared to the opening at 99.38.

We have followed on from the Chinese economy the release of the Trade Balance Index reading, which showed a surplus of 139 billion yuan, equivalent to $ 19.9 billion, compared to a deficit of 43 billion yuan, equivalent to $ 7.1 billion last February, contrary to expectations that indicated a surplus With a value of 175 billion yuan, equivalent to $ 19.7 billion, with the decrease in exports and the increase in imports during the past month.

On the other hand, investors are currently awaiting by the US economy the release of the import price index, which may explain the widening decline to 3.1% compared to 0.5% in the previous reading in February, as the annual reading of the import price index may show a widening decline to 4.6% compared to 1.2 % In the previous annual reading for February.

This comes hours before the disclosure tomorrow, Wednesday, of the retail sales index reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, and which may reflect its largest decline in decades due to the repercussions of the spread of the Corona virus in the United States. In America recently.

It is noteworthy that Federal Reserve Governor Jerome Powell noted last Thursday in his speech about his country's satellite economy at the Brookings Institution because unemployment rates may rise strongly temporarily and that there will be entities that need direct financial support, while stating that the Federal Reserve has the ability to lend, Except that he does not have the ability to spend.

Powell also expressed at the time that there are signs that the recovery may be strong when it occurs, while addressing the fact that the conditions in the markets have generally improved 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 to take More actions and incentives to support the world's largest economy.

Powell's comments came at the time after the Federal Reserve suddenly announced Thursday that $ 2.3 trillion in loans would be provided to support the economy and that it was working to provide assistance to all families and workers in American companies of all sizes, and according to the latest figures issued by the World Health Organization, the number of cases has increased Affected by nearly 1.78 million, 11,828 people were killed in 213 countries.

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 be 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 Bank'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 Corona virus, and this came in conjunction with the agreement of the European Union finance ministers at the time. On a stimulus package worth 540 billion euros ($ 590 billion) to combat the economic consequences of the global epidemic.

Technical analysis

Gold price confirmed the breach of 1703.25 level after the daily candle closed above it, reinforcing expectations for more gains in the short and medium term, and the path is open for heading towards our next target which is located at 1770.00.

Consequently, the bullish trend will remain dominant during the upcoming sessions, supported by the EMA50, noting that breaking the 1703.25 level will press the price to start a descending correction wave over the intraday basis before any new attempt to rise.

The expected trading range for today is between 1700.00 support and 1750.00 resistance.

Expected trend for today: bullish.