Gold analysis 07.05.2020

Gold prices rose during the Asian session amid the dollar index rebounded from above since April 27, according to the inverse relationship between them after the developments and data that were followed by the Chinese economy, the largest consumer of metals globally and on the cusp of developments and economic data expected today Thursday by the US economy, which includes talk Member of the Federal Committee and Chairman of the Federal Reserve Bank of Philadelphia Patrick Harker is in the shadow of market pricing for the general trend of easing restrictions and the near end of the global closure imposed to combat the spread of Coronavirus.

At 05:24 am GMT, gold price futures for June delivery rose 0.54% to trade at $ 1,695.10 per ounce compared to the opening at $ 1,686.00 per ounce, knowing that the contracts started the trading session on a falling price gap after yesterday's trading was concluded At $ 1,688.50 an ounce, with the US dollar index down 0.01% to 100.19 compared to the opening at 100.20.

We have followed about the Chinese economy, the largest economy in Asia and the second-largest economy in the world, the second-largest industrialized country in the world, the release of the Trade Balance Index reading, which showed the widening of the surplus to 318 billion yuan, equivalent to $ 45.2 billion compared to 139 billion yuan, equivalent to $ 19.9 billion in March, contrary to expectations that the surplus will shrink to 82 billion yuan ($ 9.1 billion), as exports increase and imports decline in the past month.

On the other hand, investors are currently awaiting by the US economy the release of the aid claims index for the last week on the second of May, which may reflect a decline of 839 thousand applications to 3,000 thousand requests compared to 3,839 thousand requests in the previous weekly reading, while reading requests may appear The continuous benefit for the last week on the 25th of this month, increasing by 1,913 thousand applications to 19,905 thousand applications compared to 17,992 thousand requests.

This comes in conjunction with the issuance of the initial reading of the single labor cost index, which reflects the acceleration of growth to 4.3% compared to 0.9% in the fourth quarter, while the initial reading of the productivity of the sectors other than agricultural may indicate a decrease of 5.4% versus an increase of 1.2%, leading to the participation of a member of the Federal Committee and the head of a bank Philadelphia Federal Reserve Patrick Harker at a hypothetical panel discussion on Coronavirus and economic forecasts at the Chicago Council on World Affairs.

Technical analysis

The gold price came under clear negative pressure yesterday, as it reached the pivotal support level of 1678.45, noting that the price starts the day with an upward tendency in an attempt to move away from the mentioned level, which supports the continuation of the expected upside scenario for the coming period, supported by the stochastic movement at the saturation areas in Selling, pending heading towards our first main target expected at 1747.43.

We point out that the breach of 1727.00 will facilitate the price's mission by achieving the positive targets that extend to 1785.00 after exceeding the first target, noting the importance of holding above 1678.45 for the continuation of the expected rise

The expected trading range for today is between 1675.00 support and 1720.00 resistance.

Expected trend for today: bullish.