Gold analysis 25.06.2020

Gold price futures fluctuated in a narrow range that tilted higher, disregarding the dollar index rebound for the third session from the lowest since 11 June, according to the inverse relationship between them on the threshold of developments and economic data expected today Thursday by the US economy and amid market pricing of the possibility of a trade war Between the United States and the European Union in conjunction with continuing concern about the repercussions of the outbreak of the Coronavirus.

At exactly 04:53 AM GMT, gold futures contracts for next August delivery rose 0.08% to trade at $ 1,773.80 per ounce compared to the opening at $ 1,772.30 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,775.10 an ounce, while the US dollar index rose 0.05% to 97.28 compared to the opening at 97.24.

Investors are currently awaiting by the US economy the disclosure of the GDP reading, which may confirm the contraction of the largest economy in the world 5.0%, little changed from the previous initial reading for the first quarter and against a growth of 2.1% in the previous reading of the fourth quarter, as the reading of the index may confirm The same is measured by prices, growing at 1.4%, little changed from the previous initial reading, and against a growth of 1.3% in the fourth quarter.

This comes in conjunction with the disclosure of the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two thirds of the gross domestic product in the United States of America, which may reflect a rise of 10.3% compared to a decline of 17.7% in April, when it reflected the largest decline in Decades of time, as the substantial reading of the same index may show, up 2.1%, compared to a decline of 7.7% in April.

This also comes in conjunction with the release of the aid claims index for the last week on June 20, which may reflect a decline of 188 thousand requests to 1,320 thousand applications compared to 1,508 thousand requests in the previous reading, as reading of the continuing benefit requests for the past week may appear in 13 From this month, a decrease of 576 thousand requests to 19,968 thousand requests, compared to 20,544 thousand requests.

Also, in conjunction with the release of the merchandise trade balance index, which may explain the deficit shrinking to $ 68.0 billion compared to $ 69.7 billion in April, and the release of the initial reading of the Wholesale Stocks Index, which may reflect the acceleration of growth to 0.4% compared to 0.3% in April , To the Federal Reserve's disclosure of test scores for the solvency and stress tests of the 34 largest banks in the United States of America.

Other than that, we followed yesterday the report that touched upon the fact that the White House is considering imposing new customs duties on exports worth $ 3.1 billion from France, Germany, Spain and the United Kingdom, and that the American trade representative wants to impose new tariffs and increase the fees on European products that his country imports from the European Union And this came in conjunction with the Federation's discussion of whether to close the door to American travelers this summer due to the Corona outbreak in America.

Technical analysis

The gold price hovers around the level of 1765.00 and is putting pressure negatively on it, but we notice that the stochastic has cleared its negative momentum and is entering the oversold areas in the sale, while the EMA50 provides positive support for the price.

Thus, we believe that opportunities are available to resume the main bullish trend, whose next targets are located at 1800.00 then 1840.00, noting that the continuation of the bullish wave requires stability above 1741.00 and most importantly above 1725.00.

The expected trading range for today is between 1750.00 support and 1790.00 resistance.

Expected trend for today: Overall bullish.