Gold analysis 11.05.2020

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session amid the decline of the US dollar index for the third consecutive session from its highest since April 24, according to the inverse relationship between them amid the scarcity of economic data at the beginning of this week by the American economy, the largest economy in The world is in the shadow of market pricing Monday to reopen global economies.

At exactly 04:37 AM GMT, gold price futures for June delivery rose 0.10% to trade at $ 1,707.70 per ounce compared to the opening at $ 1,706.00 per ounce, knowing that the contracts started the session’s trading on a falling price gap after the week’s transactions ended Last at $ 1,713.90 an ounce, with the US dollar index down 0.10% to 99.71 compared to the opening at 99.81.

We have followed this past weekend reporting to France, Italy and the United Kingdom the lowest number of deaths due to the spread of the coronavirus globally since March, which boosted investor hopes for the reopening of global economies while easing social divergence measures globally, while Caution still remains, as they just followed a warning by South Korea about a possible second wave of coronavirus cases.

In another context, yesterday we followed the warning of the US Treasury Secretary Stephen Mnuchen that unemployment rates in his country "may get worse before they improve" and that unemployment rates may have reached 25%, and his statements came hours after the US labor market data showed last Friday high rates US unemployment rose to nearly seven decades, to 14.7%, with about 20.5 million jobs lost in April due to the outbreak of the coronavirus.

Technical analysis

The price of gold continues to decline gradually to move around the EMA50, as it was affected by the negativity of the stochastic indicator, noting that the indicator reaches the oversold areas in the sale to form a positive incentive that we expect to contribute to pushing the price to resume the main bullish trend.

In general, we continue to favor the bullish trend over the intraday and short term unless 1678.45 level is broken and stability below it, noting that breaching 1724.00 will facilitate the price task by achieving the main positive targets that start at 1747.43 and extend to 1785.00.

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

Expected trend for today: bullish