Gold Analysis 23-06-2020

Gold prices fluctuated in a narrow range tilted towards the decline during the Asian session to witness its bounce for the second session from the top since April 14, when it tested the highest for it since October 9, 2012 amid the rise of the US dollar index according to the inverse relationship between them on the threshold of developments The economic data expected today by the American economy, the largest economy in the world.
 
At exactly 04:24 am GMT, gold futures contracts for next August delivery fell 0.06% to trade at $ 1,763.80 per ounce compared to the opening at $ 1,764.90 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,766.40 an ounce, with the US dollar index rising 0.13% to 97.04 compared to the opening at 96.92.
 
Investors are currently awaiting the disclosure of the initial reading of the Markit Industrial and Service Purchasing Managers Index for the United States of America, which may reflect the widening of the industrial sector in the largest industrial country in the world to 50.0 compared to a contraction of 39.8 in the previous reading in May, while We may witness the shrinking of the service sector to 46.9 compared to 37.5 in May.
 
This comes before we witness from the US economy the release of the Richmond Industrial Index reading, which may reflect the contraction of shrinkage to 3 versus 27 in May, in conjunction with the disclosure of housing market data with the release of new home sales, which may indicate an increase of 3.5 % To about 637 thousand homes, compared to a 0.6% increase at about 623 thousand homes last April.
 
Other than that, we followed yesterday, Monday, US President Donald Trump, in his Twitter account on his official account, expressed that “the Chinese trade deal is completely sound. We hope that they will continue to abide by the terms of the agreement!” Which confirmed that the first stage of the trade deal that was reached To it at the beginning of this year among the largest economies in the world are still standing, which reflects in one way or another the disappearance of the escalation between Washington and Beijing.

Technical analysis

  
The price of gold shows slight negative trades after reaching our first target 1765.00, noting that the stochastic starts to get rid of its negative momentum, while the EMA50 constitutes a continuous positive price support.
 
Consequently, we believe that opportunities are available to resume the main bullish trend, awaiting the breach of the mentioned level to confirm the extension of the upside wave to reach the areas of 1800.00 then 1840.00, noting that breaking 1735.00 will put the price under additional negative pressure aimed at testing the areas of 1691.90 before any new attempt to rise.
 
The expected trading range for today is between 1735.00 support and 1775.00 resistance
 
Expected trend for today: bullish