Gold Analysis 19-06-2020

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 threshold of developments and economic data expected on Friday by the American economy, the largest economy in the world, which includes the talk of members of the Federal Open Market Committee, headed by the governor of the Reserve Bank Federalist Jerome Powell.

At exactly 04:22 am GMT, gold futures contracts for next August delivery rose 0.32% to trade at $ 1,735.40 per ounce compared to the opening at $ 1,729.80 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,731.10 an ounce, with the US dollar index down 0.04% to 97.40 compared to the opening at 97.44.

The markets are currently awaiting by the US economy the release of the current account reading, which may reflect the deficit shrinkage to $ 101 billion compared to $ 110 billion during the past fourth quarter, before we witness the speech of Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee Randall Quarles about Banking solvency tests at the Women's Policy Event in Satellite Housing and Finance.

Up to the participation of Federal Reserve Governor Jerome Powell with the President of the Cleveland Bank and member of the Federal Open Market Committee Loretta Mester in a hypothetical discussion about building a flexible workforce during the era of Corona Virus at the Youngstown Community Event in Ohio, and this comes hours after the expiry of the certification activities The Governor Powell's semiannual about monetary policy in front of Congress.

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 narrow range continues to dominate gold price trading, which hovers around the EMA50, and therefore, there is no change to the upside scenario that targets 1765.00 as a first station, supported by the positive signal provided by the stochastic, while recalling that a break of 1721.00 will put the price under temporary negative pressure To test the level 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