Gold analysis 02.06.2020

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session, while neglecting the positive stability. Opening world economies against tensions between Washington and Beijing and the protests in the United States.

At exactly 03:55 AM GMT, gold price futures for next August delivery rose 0.10% to trade at $ 1,752.10 per ounce compared to the opening at $ 1,750.30 per ounce, while the US dollar index rose 0.04% to 97.88 compared to the opening at 97.84.

We have followed the report, which touched upon the fact that Chinese officials asked state-owned agricultural companies to stop buying soybeans and pork from the United States, against the backdrop of US President Donald Trump's announcement last Friday that he would start taking measures to eliminate the special treatment of Hong Kong and punish officials in China and Hong Kong in addition to tracking Chinese companies operating in America.

This comes in the shadow of escalating tensions between Washington and Beijing in the wake of China’s approval last Thursday of a very interesting national security bill for Hong Kong, which threatens the hard-won trade deal between them, and it is reported that Trump chose last year to silence the Hong Kong democratic protests. Priority was given to a trade agreement with his Chinese counterpart, Xi Jinping, but relations later deteriorated, particularly with the Corona pandemic.

In another context, markets assessed the possibilities of the US military deploying in the United States to suppress social strikes and violent demonstrations in cities over the killing of George Floyd of African descent by the police, after the curfew failed to contain massive protests that included violence and looting with demonstrators taking to the streets after weeks Closings during the Corona pandemic, which has caused millions to lose their jobs.

Technical analysis

Gold price shows calm positive trading to move away from the EMA50, reinforcing expectations of the continuation of the bullish trend in the intraday and short term, pending testing the 1764.00 level which represents our first main goal, with a reminder that breaching this level will push the price to 1810.00 as a next station.

Thus, we will continue to favor the bullish trend for the upcoming period, noting that a break of 1719.00 will press the price to test the most important support at 1691.00 before any new positive attempt.

The expected trading range for today is between 1720.00 support and 1764.00 resistance.

Expected trend for today: bullish.