Gold analysis 22.06.2020

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session to witness the highest since April 14, when I tested the highest for it since the ninth of October 2012 amid the decline in the US dollar index for the first time in five sessions, indicating its rebound from the top for him since June 2, according to the inverse relationship between them, on the cusp of developments and economic data expected today by the US economy, the largest economy in the world, and amid concern about the spread of a second wave of the Corona virus with the increase in the number of new infections.

At exactly 4:02 am GMT, gold futures contracts for next August delivery rose 0.13% to trade at $ 1,768.10 per ounce compared to the opening at $ 1,765.80 per ounce, knowing that the contracts started the session’s trading on an upward price gap after it concluded trading Last week at $ 1,753.00 an ounce, with the US dollar index down 0.04% to 97.57 compared to the opening at 97.61.

Investors are currently awaiting by the US economy the release of the Chicago Business Index reading for the month of May, before the housing market data was also revealed for the past month with the release of the Existing Home Sales Index, which may reflect a 2.3% decline to about 4.15 million homes compared to a decline by 17.8% at about 4.33 million homes in the previous reading for the month of April.

Other than that, the World Health Organization announced on Sunday the largest increase in the number of coronavirus infections in one day, as the number of new cases reached 183 thousand cases infected with Coronavirus in the previous 24 hours, with Brazil recording 54,771 cases and a difference of 18,154 cases from the United States Which came second from the recent number of new infections by 36,617 cases.

India recorded more than 15.4 thousand new cases infected with coronavirus in one day, and health experts requested that increase in the number of new cases infected with coronavirus because it could be due to several factors including that more tests were done as well as a wider spread of infection, according to the latest figures Issued by the organization, the number of cases infected with the Corona virus rose to nearly 8.71 million, and 461,715 people were killed in 216 countries.

In another context, the markets are looking to tomorrow, Wednesday, to unveil the International Monetary Fund about its latest expectations regarding the global economy, and that comes after we followed last week. Of what was estimated before, "explaining at the time that the current crisis called" the great closure "," is not like anything the world has seen before. "

Technical analysis

The gold price opened today's trading with a strong rise to approach our first waited target at 1765.00, reinforcing expectations for the continuation of the main bullish trend, waiting for the breach of this level to open the way for heading towards 1840.00 areas as the next major station.

Thus, we continue to favor the overall bullish trend that gets good support from the EMA50, noting that a break of 1725.00 will put the price under negative pressure targeting testing the pivotal support floor 1691.90 before any new attempt to rise.

The expected trading range for today is between 1737.00 support and 1775.00 resistance.

Expected trend for today: bullish.