Gold analysis 15.05.2020

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session, disregarding the rise of the US dollar index for the seventh session in ten sessions from the lowest since March 30, according to the inverse relationship between them after the developments and economic data that we followed on Friday from the Chinese economy, the largest importer of minerals Globally, on the cusp of developments and economic data expected today, Friday, by the US economy, the largest economy in the world.

At 05:10 am GMT, gold price futures for June delivery rose 0.16% to trade at $ 1,740.70 per ounce compared to the opening at $ 1,738.50 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded yesterday's trading At $ 1,740.90 an ounce, while the US dollar index rose 0.3% to 100.29 compared to the opening at 100.26.

We have followed about the largest economies of Asia and the second-largest economy in the world and the second-largest industrialized country globally after the United States The National Bureau of Statistics of China revealed data for the month of April with the release of the annual reading of the industrial production index, which showed a rise of 3.9% against a decline of 1.1% in the annual reading Previous to last March, beating expectations that indicated a 1.5% rise,

This came in conjunction with the National Bureau of Statistics of China unveiling the annual reading of the retail sales index, which reflected a decline in the decline to 7.5% compared to 15.8% in the previous annual reading for the month of March, worse than expectations that indicated a decline in the decline to 5.9%, and the release of unemployment rates, which It showed an increase to 6.0% compared to 5.9% in March, worse than expectations that it fell to 5.8%.

On the other hand, investors are currently awaiting by the US economy the disclosure of the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, which may reflect the widening decline for the worst ever to 12.0% compared to 8.7% in March March, as the fundamental reading of the same index may reveal that the worst rate ever fell to 8.6% compared to 4.5% in March.

This comes in conjunction with the disclosure of industrial sector data for the largest industrial country in the world with the release of the New York industrial index reading, which may reflect the widening of the contraction to 65.0 compared to 78.2 in April, before the release of the industrial production index, which may reflect the widening of the decline to 11.3 % Versus 5.4% in March, while a reading of the Energy Utilization Index may show a slowdown in growth to 63.9% compared to 72.7% in March.

Markets are also looking to reveal the preliminary reading of the University of Michigan index of consumer confidence, which may show a decrease to 68.0 compared to 71.8 in April, in conjunction with the final reading of the wholesale inventory index showed a decline in the decline to 0.3% compared to 0.4% in February, and the disclosure of market data Work with the release of the employment opportunities and job turnover reading, which may reflect a decrease to 5.77 million compared to 6.88 million in February.

It is reported that Federal Reserve Governor Jerome Powell Noh Wednesday during his pre-prepared speech on economic issues in an online seminar organized by the Peterson Institute for International Economics at the time that "although the economic response was timely and large, appropriately, it may not be the last chapter, Given that the road ahead is very uncertain and subject to great risks. "

Technical analysis

Gold price confirmed the breakout of the triangle resistance that appears on the chart after the daily candle closes above it, to get a good positive incentive that supports the continuation of the expected upside scenario in the intraday and short term while recalling that our positive targets start at 1747.43 and extend to 1785.00 after crossing the previous level.

Therefore, we await further gains during the upcoming sessions supported by the EMA50, noting that a break of 1718.00 will put the price under intraday negative pressure to head towards testing the 1678.45 level before any new attempt to rise.

The expected trading range for today is between 1718.00 support and 1755.00 resistance.

Expected trend for today: bullish.