Gold Analysis 17-06-2020

Gold prices fluctuated in a narrow range tilted towards the decline during the Asian session, while neglecting the negative stability of the US dollar index, according to the inverse relationship between them on the cusp of developments and economic data expected on Wednesday by the US economy, which includes the second half of the semi-annual testimony of the Governor of the Federal Reserve Jerome Powell in front of Congress on monetary policy and in light of investors' assessment of the IMF warnings and geopolitical tensions in Asia against the stimulus and positive experimental results of the Corona vaccine.
 
At exactly 04:40 am GMT, gold futures contracts for next August delivery fell 0.05% to trade at $ 1,734.50 per ounce compared to the opening at $ 1,735.30 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,736.50 an ounce, while the US dollar index fell 0.04% to 96.97 compared to the opening at 97.01.
 
The markets are currently awaiting the release of the housing market data by the US economy, with the release of both the beginning construction index and the building permit index, and amid expectations that building permits will reflect a rise to about 1.23 million permits compared to about 1.07 million permits in April, as it may reflect Homebuilding reading increased to around 1.10 million homes compared to about 0.89 million homes in April.
 
This comes before we witness the second and last half of Federal Reserve Governor Jerome Powell's testimony about monetary policy before the US Congress, as Powell will today testify about the Federal Reserve’s monetary policy semi-annual report to the House of Representatives Financial Services Committee in Washington via satellite .
 
We would like to point out that the Federal Reserve Governor Powell made yesterday his prepared testimony regarding the semi-annual report of monetary policy before the Senate Banking Committee also via satellite, which he noted through that there is a state of uncertainty about the timing and strength of the potential economic recovery and that the current decline may lead to inequality Within the United States if the order is not contained.
 
 
Powell also stated that "until confidence returns that the Corona pandemic is under control, a full recovery will not be possible," explaining that "the downward curve continues, and with it the possibility of jobs will continue to be in danger of final loss and business closures," adding that it is unlikely that we will see a full recovery before Restoring economic confidence, while addressing the fact that the epidemic has a greater impact on people with lower incomes.
 
In the same vein, Powell noted that the difference in the rise in unemployment is now from 2008, that at that time there were no jobs, while the matter is now the result of business closures and that with their return, people return to their jobs, and in another context, investors are looking forward to the speech of the President of the Cleveland Bank and the Federal Reserve Board member Federal Open Marketplace Loretta Mester reported on the Federalist response to the Corona pandemic at a Satellite Economic Education Council event.
 
Technical analysis

 
The gold price did not show any strong movement yesterday, to continue to fluctuate around the intraday resistance line, and therefore, there is no change to the expected upside scenario in the intraday and short term, whose next main target is located at 1765.00, noting that a break of 1721.00 will put the price under negative pressure Intraday targeting the 1691.90 level before any new positive attempt.
 
The expected trading range for today is between 1710.00 support and 1760.00 resistance
 
Expected trend for today: bullish