Gold analysis 26.05.2020

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session amid the decline of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected on Tuesday by the American economy and amid market pricing to reopen many global economies and hopes to reach a vaccine for the Coronavirus at a time Later this year.

At exactly 03:43 am GMT, gold futures contracts for next August delivery rose 0.06% to trade at $ 1,754.00 per ounce compared to the opening at $ 1,753.00 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,753.50 an ounce, with the US dollar index down 0.09% to 99.67 compared to the opening at 99.76.

Investors are currently awaiting by the US economy, the largest economy in the world, to disclose data on the housing market with the release of the house price index, which may explain the slowdown in growth to 0.6% compared to 0.7% in February, in conjunction with the release of the annual reading of the house price index, which It may also show a slowdown in growth to 3.4% versus 3.5% in February.

This comes before the release of the new home sales index, which may explain the decline in the decline to 15.4% for 492 thousand homes compared to 21.9% at 627 thousand homes in March, in conjunction with the disclosure of the consumer confidence index reading, which may reflect a widening to 87.1 compared to 86.9 In April, they reached the participation of Federal Reserve Board member and Minneapolis Federal Reserve Chairman Neil Kakkari in a panel discussion on the Corona Virus pandemic.

Other than that, we followed this weekend the Japanese Prime Minister Shinzo Abe to lift the state of emergency in the last five provinces in his country out of the 47 provinces, explaining that Japan managed to control the coronavirus, adding that preventing the spread of infection during the restart of the economy It is a difficult challenge and there is a possibility of re-imposing the state of emergency again if the infection with the deadly virus spreads.

Technical analysis

The gold price remains stuck between the pivotal levels of support 1725.90 and resistance that is now dropping to 1742.00, and therefore, our neutral stance will remain in place until the price confirms the penetration of one of these levels to determine the following targets more accurately.

We remind you that breaching the mentioned support will put the price under negative pressure mainly targeting the test of 1691.10 level, while breaching the resistance will constitute a positive catalyst that supports chances of returning to the main bullish path that its next main target is located at 1810.00.

The expected trading range for today is between 1705.00 support and 1750.00 resistance.

Expected trend for today: It depends on the levels mentioned in the report.