Gold analysis 21.05.2020

Gold prices fluctuated in a narrow range slanting toward decline, to witness its bounce for the second session in four sessions from its highest since April 14, when it tested the highest for it since October 5, 2012 amid a rise in the dollar index, indicating its bounce for the second session from the lowest since May 4th, when the lowest was experienced since March 30 according to the inverse relationship between them on the threshold of developments and economic data expected today Thursday by the US economy, which includes the speech of members of the Federal Open Market Committee.

At exactly 03:54 AM GMT, gold price futures for June delivery decreased 0.46% to trade at $ 1,751.70 per ounce compared to the opening at $ 1,743.60 per ounce, knowing that the contracts started the session’s trading on a falling price gap after yesterday's trading was concluded At $ 1,752.10 an ounce, with the US dollar index rising 0.18% to 99.37 compared to the opening at 99.18.

Investors are currently awaiting by the US economy the release of the aid claims index for the last week on May 15, which may reflect a decline of 581 thousand applications to 2,400 thousand applications compared to 2,981 thousand requests in the previous reading, while the reading of continuing benefit applications may appear for the past week On the eighth of this month, an increase of 1,932 thousand requests to 24,765 thousand requests compared to 22,833 thousand requests.

This comes in conjunction with the disclosure by the largest industrialized country in the world of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect the contraction contraction to 40.0 compared to 56.6 last April, and before we witness the disclosure of the initial reading of the manufacturing PMI Markit is for the United States, which may reflect a contraction of shrinkage to 39.3 compared to 36.1 in April.

It also revealed the initial reading of the Services PMI that may reflect the contraction in value to 32.6 compared to 26.7 in April, before the release of the leading indicators, which may explain the decline in the decline to 5.5% compared to 6.7% last March, in conjunction with The release of the Existing Home Sales Index, which may explain the widening decline to 18.9% to 4.31 million homes compared to 8.5% at 5.27 million homes in April.

All the way to FBI members ’satellite talk, New York Fed President John Williams at the Greater Rochter Chamber of Commerce and Federal Reserve Governor Richard Clarida’s view of the US economic outlook and monetary policy at the New York Business Economics Association, before we witness the introduction of the Fed’s governor Jerome Powell introductory remarks about the Coronavirus at a federalist's listening event.

This comes hours after the Federal Reserve disclosed the minutes of the Federal Open Market Committee meeting held on April 28-29, in which it decided to fix interest on federal funds at zero levels between zero and 0.25%, which came in line with Expectations at that time, amid stressing the way forward in using all tools to support the American economy in these difficult times.

Technical analysis

Gold provided positive trading yesterday to settle around 1745.00, reinforcing expectations for the continuation of the main bullish trend, which is being organized within the bullish channel that appears on the above chart, while SMA 50 continues to support the price from below.

Thus, we believe that the field is open to continue rising during the upcoming sessions, which mainly targets the areas of 1805.00, noting that breaking 1726.00 and holding below it will put the price under downward corrective pressure before returning to resume the main bullish trend.

The expected trading range for today is between 1730.00 support and 1775.00 resistance.

Expected trend for today: bullish.