Gold analysis 14.05.2020

Gold prices fluctuated in a narrow range tilted towards the decline during the Asian session amid the rise of the US dollar index for the sixth session in nine sessions from the lowest since March 30, according to the inverse relationship between them on the threshold of developments and economic data expected on Thursday by the US economy, which includes talk Member of the Federal Open Market Committee Neil Kachkari later today.

At exactly 04:20 AM GMT, gold price futures for June delivery decreased 0.11% to trade at $ 1,721.20 per ounce compared to the opening at $ 1,723.10 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,716.40 an ounce, with the US dollar index rising 0.10% to 100.28 compared to the opening at 100.18.

Investors are currently awaiting by the US economy the issuance of the aid claims index for the last week on the ninth of May, which may reflect a decline by 669 thousand applications to 2,500 thousand requests compared to 3,169 thousand requests in the previous reading, while the reading of the continuous benefit requests may appear last week In the second of this month, an increase of 2,453 thousand requests to 25,100 thousand requests compared to 22,647 thousand requests.

This comes in conjunction with the release of the import price index, which may explain the decline in the decline to 3.1% compared to 2.3% in March, as the annual reading of the same indicator may show the widening of the decline to 6.2% versus 4.1%, all the way to the speech of a member of the Federal Open Market Committee and Chairman Federal Reserve Bank of Minneapolis Neil Chakkari about the economic responses to the Coronavirus at an online seminar by the Economic Club of Minnesota.

Otherwise, yesterday we followed the statements of Federal Reserve Governor Jerome Powell prepared for the event that was broadcast online with the Peterson Institute for International Economics through which he noted that "although the economic response was timely and appropriately large, it may not be The last chapter, given that the road ahead is very uncertain and subject to great risks. "

Powell also warned yesterday that the potential economic recession may be deeper and longer without additional fiscal stimulus, which limited the appetite of risk for investors, especially with the uncertainty that markets are witnessing in reopening global economies and easing the social divergence measures that have been imposed in efforts to reduce Coronavirus outbreak already, which could lead to a possible second wave of killer virus outbreak with the reopening.

Technical analysis

The gold price returns to fluctuate around the EMA50, and it tries to consolidate positively despite the stochastic negativity, to keep our expectations for the bullish trend that targets 1747.43 then 1785.00 mainly.

The triangle shown on the above chart has a strong resistance at 1720.00 now, and the price needs to breach this level to confirm the rally towards the awaited targets, taking into consideration that breaking 1678.45 will stop the suggested rise and put the price under the downward corrective pressure.

The expected trading range for today is between 1690.00 support and 1735.00 resistance.

Expected trend for today: bullish.