Gold analysis 05.06.2020

Gold prices fluctuated in a narrow range tilted towards the decline during the Asian session, condoning the decline in the US dollar index, which is in connection with its longest daily loss marches since April 2011, according to the inverse relationship between them on the cusp of developments and economic data expected on Friday by the American economy and amid investor pricing To reopen global economies in exchange for the continuing protests in America.

At exactly 04:19 AM GMT, gold futures contracts for next August delivery fell 0.27% to trade at $ 1,716.10 per ounce compared to the opening at $ 1,720.80 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,727.40 an ounce, while the US dollar index fell 0.01% to 96.74 compared to the opening at 96.75.

Investors are currently awaiting by the US economy the disclosure of labor market data with the release of the employment change index for sectors other than agriculture, which may reflect the loss of 7,750 thousand jobs compared to the loss of 20,537 thousand jobs last April, while reading the average hourly income index may indicate Growth slowed to 1.0% versus 4.7%. That is, with the unemployment rate reading up to 19.4% compared to 14.7% in April.

In another context, we followed yesterday, US President Donald Trump expressed his belief that the army will not have to deploy his country to suppress violent demonstrations in cities over the killing of George Floyd of African descent at the hands of the police, after the curfew failed to contain the massive protests that included violence and looting With demonstrators taking to the streets after weeks of closures during the Corona pandemic, which led to millions losing their jobs.

Technical analysis

The gold price is facing strong resistance formed by the EMA50, to show some bearish bias with the opening of the day, affected by the stochastic negativity, and it may conduct a new test for the level of 1691.10 before returning to rise again.

In general, the bullish trend scenario is still valid with price stability above the support mentioned above, as breaking it will press the price to make more bearish correction targeting 1646.00 level as a next negative station, while the price needs to breach 1721.00 to facilitate the task of heading towards our first positive target that exists at 1764.00.

The expected trading range for today is between 1690.00 support and 1750.00 resistance.

Expected trend for today: bullish.