Gold analysis 29.04.2020

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness its rebound for the second consecutive session from the lowest since April 22, with the US dollar index rebounding for the fourth consecutive session from its highest since the sixth of this month according to the inverse relationship Between them.

This comes on the cusp of developments and economic data expected today Wednesday by the US economy, which includes the activities of the Federal Open Market Committee meeting and the press conference to be held by Federal Reserve Governor Jerome Powell in Washington and in the shadow of market pricing to ease restrictions and the close of the global closure, with many countries announcing Relax restrictions.

At exactly 04:36 AM GMT, gold price futures for June delivery rose 0.05% to trade at $ 1,725.60 per ounce compared to the opening at $ 1,724.80 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,722.20 an ounce, with the US dollar index down 0.19% to 99.70 compared to the opening at 99.89.

Investors are currently awaiting by the US economy the disclosure of the initial reading of the gross domestic product of the United States for the first quarter, which may show a contraction of the largest economy in the world 4.0% compared to growth of 2.1% in the fourth quarter, while the initial reading may reflect the GDP measured in prices from Last quarter, the pace of growth slowed to 1.0% compared to 1.3% in the fourth quarter.

This comes before we witness the disclosure of housing market data with the release of existing home sales, which may show a 13.3% decline compared to a rise of 2.4% last February, and in conjunction with the activities of the Federal Open Market Committee meeting April 28-29, which is expected to Through it, monetary policymakers at the Federal Reserve maintain reference interest rates at zero levels between 0.25 and 0.25%.

Up to the events of the press conference that will be held by Federal Reserve Governor Jerome Powell, which comes half an hour after the end of the activities of the meeting of the Federal Open Market Committee in Washington, and it is reported that the Federal Committee approved at the surprising previous meeting held on March 15, which was the second in Less than two weeks after the previous snap meeting on the third of the same month, returning interest to zero levels.

It is noteworthy that the Federal Committee reduced the interest on federal funds in the previous meeting by 100 basis points from between 1.00% and 1.25% to zero levels, which it remained from 2008 until the meeting of 27-28 October 2015, after reducing it at the emergency meeting The previous rate of 50 basis points from between 1.50% and 1.75%, and in the wake of cutting interest three times by 25 basis points in previous meetings last year.

Technical analysis

The gold price continues to fluctuate around the EMA50, and gets a positive signal through the stochastic indicator now, waiting for the contribution to push the price to achieve gains during the upcoming sessions, where our first target is located at 1747.43, whose breach represents the key to the rally towards 1780.00 as the next station.

Thus, we will continue to favor the bullish trend, provided stability above 1678.45, noting that breaching 1734.00 will facilitate the price's mission by achieving the suggested positive targets.

The expected trading range for today is between 1690.00 support and 1740.00 resistance.

Expected trend for today: bullish.