Gold Analysis 18-06-2020

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session amid the negative stability of the dollar index, according to the inverse relationship between them, on the cusp of developments and economic data expected Thursday by the American economy, the largest economy in the world, and in light of investors' pricing of the possibility of a second wave of Corona virus and experimental results. Positive of the drug "Dexamethasone", which helps severe cases of people with HIV.
 
At exactly 04:51 AM GMT, gold futures contracts for next August delivery rose 0.03% to trade at $ 1,736.00 per ounce compared to the opening at $ 1,735.50 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,735.60 an ounce, with the US dollar index down 0.04% to 97.03 compared to the opening at 97.08.
 
Markets are currently awaiting by the US economy the release of the index of aid requests for the past week on June 12, which may reflect a decline of 342 thousand requests to 1,300 thousand applications compared to 1,542 thousand requests in the previous reading, as may appear reading the ongoing benefit requests last week On the fifth of this month, it decreased by 1,129 thousand requests to 19,800 thousand requests compared to 20,929 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 in contraction to 23.0 compared to 43.1 last May, and before we also witnessed by the American economy the reading of indicators The leader, which may reflect a rise of 2.4%, compared to a decline of 4.4% last March.
To the talk of the President of the Cleveland Bank and the Federal Open Market Committee member Loretta Mester about the response of the Federal Reserve to the Corona pandemic in an event hosted by the World Takaful Center, and this comes hours after the activities of the semi-annual certification of the Governor of the Federal Reserve Jerome Powell about the monetary policy in front of Congress American.
We would like to point out, because Powell Naughty testified before the Congress that there is a state of uncertainty about the timing and strength of the potential economic recovery and that the current downturn may lead to widening inequality within America in the event that the matter is not contained, while touching that "until the confidence is restored that the Corona pandemic is under control." , A full recovery will not be possible "and that" the downward curve continues and with it the possibility of jobs falling under the risk of final loss and business closure "
Powell said earlier this week that it is unlikely that we will fully recover the largest economy in the world before restoring economic confidence, with his consideration of the fact that the epidemic has a greater impact on people with low incomes, while addressing the fact that the difference in high unemployment is now in 2008, that At that time, there were no jobs, while the current situation is the result of business closings and that with its return people return to their jobs.
Powell stressed that the Federal Reserve is ready to provide more stimulus if the need arises and that the Federal Open Market Committee will do everything in its power to support the American economy, and that he touched on the fact that the Federal Reserve works to ensure the effectiveness of protection and safety systems before working to issue a digital dollar , Adding that if it turns out that the digital currency will be beneficial to the American economy, then the Federal Reserve will work to issue it.
 
Technical analysis

  
The price of gold is due to fluctuation around the resistance line that appears on the chart, and it is moving above SMA 50 to get positive support that strengthens expectations for the continuation of the expected bullish direction for the coming period, which aims to visit the level of 1765.00 as a first positive station.
 
Thus, the positive scenario will remain active for today, noting that breaching the target level will extend the upside wave to reach 1810.00, while a break of 1721.00 represents a negative factor that will press the price for a temporary decline towards the areas of 1691.90 before any new attempt to rise.
 
The expected trading range for today is between 1710.00 support and 1760.00 resistance
 
Expected trend for today: bullish