Gold analysis 24.04.2020

Gold price futures fluctuated in a narrow range tilted toward a decline during the Asian session amid the US dollar index rebounding to the seventh session in eight sessions from the lowest since March 30, according to the inverse relationship between them on the threshold of developments and economic data expected on Friday by the American economy and in Shades of market pricing for the negative repercussions of the spread of the Coronavirus and the stimulus that aims to contain these repercussions.

At exactly 04:47 AM GMT, gold price futures for June delivery decreased 0.35% to trade at $ 1,746.90 per ounce compared to the opening at $ 1,753.00 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,745.40 an ounce, with the US dollar index rising 0.05% to 100.54 compared to the opening at 100.49.

Investors are currently awaiting the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a 12.0% decline compared to a rise of 1.2% last February, while A substantial reading of the same indicator may show the decline widening to 6.1% compared to 0.6% in February.

This comes before we witness the revelation of the final reading of the University of Michigan's index of consumer confidence, which may show a shrinkage in the amplitude of 67.8 compared to 71.0 in the previous reading of the previous month and 89.1 in March, otherwise, we followed yesterday the approval of the House of Representatives by an overwhelming majority on The stimulus package to support small companies and medical centers, which is estimated at $ 484 billion, to face the consequences of the outbreak of the Coronavirus.

It is noteworthy that the bill was passed last Tuesday in the Senate amid the polarity of the American policy, both the ruling Republican Party, which has the majority of the Senate, and the Democratic Party, which has the majority of the House of Representatives, in order to provide financing for small companies and support the largest economy in the world in the face of the consequences of the virus Taji, and US President Donald Trump is expected to sign the bill later.

In another context, we followed up on Wednesday, US Treasury Secretary Stephen Manuchen expressed that his country needs to boost financial spending and that 60 million workers will likely find assistance from the business loan program and that the cost of lending to workers will be low given that the federal interest is at zero levels, and this came with his testimony That America will provide $ 2.6 trillion directly to support the economy, and that the Fed provides liquidity of $ 4 trillion.

Technical analysis

Gold price appears bearish tendency with the opening of the day after approaching our first target 1747.43, where the price is affected by the negativity of the stochastic, while the moving average 50 continues to provide positive support for the price, so we continue to favor the bullish trend for the next period, whose goals begin to exceed the mentioned level of the rally towards 1780.00 as a main target next.

On the other hand, it should be noted that failure to achieve the required breach will form a low top, indicating the price trend to make a further descending correction to attack 1678.45 and open the way for visiting 1635.80 as a next corrective station.

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

Expected trend for today: bullish.