Gold Analysis 26-05-2020
Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to reflect its bounce for the third consecutive session from the highest since October 9, 2012, when it tested the highest since November 9, 2011 amid the dollar index rebounding to the ninth session. In thirteen sessions from the lowest since the tenth of March, according to the inverse relationship between them, on the cusp of developments and economic data expected today, Friday, by the US economy, the largest economy in the world, and amid hopes for more stimulus.
At exactly 04:01 am GMT, gold futures contracts for next August delivery fell 0.23% to trade at $ 1,770.80 per ounce compared to the opening at $ 1,774.80 per ounce, knowing that the contracts started the session’s trading on an upward price gap after it concluded trading Yesterday at $ 1,770.60 an ounce, with the US dollar index rising 0.01% to 97.36 compared to the opening at 97.35.
Investors are currently awaiting by the US economy the disclosure of personal spending and income data, which may reflect a rise in personal spending 8.9% compared to a decline of 13.6% last April, while we may witness a decline in personal income to 6.0% compared to a rise in 10.5% in April, While a reading of the core personal consumption expenditures price index may show stability at zero levels versus a 0.4% decline in April.
Up to the disclosure of the final reading of the University of Michigan index of consumer confidence, which may show a widening of 79.1 compared to a widening of 78.9 in the first preliminary reading of the current month and a widening of 72.3 last May, with the release of consumer expectations for inflation June for one year and five years.
Otherwise, investors are looking at the current time for the adoption of global central banks and the governments of countries globally for further stimulus, especially after the rise in the numbers of cases infected with coronavirus recently significantly again, which threatens a second wave of the Corona pandemic, and we would like to point out, because the World Health Organization has reported Earlier this week, the coronavirus outbreak had not yet reached its peak.
In the same vein, we followed yesterday the Executive Director of the World Health Organization, Tedros Adhanum, stressed that the Corona outbreak is getting worse globally despite its decline in Europe, with his statement that HIV infections may reach 10 million and that the number of deaths may reach 500 thousand next week, adding that At the end of the epidemic, the world should not return to its previous state, and a new, more environmentally friendly and helping to address climate change should be established.
On the other hand, yesterday, we also followed the Senate’s approval of a bill to punish China for self-rule in Hong Kong, and this came in conjunction with US Secretary of State Mike Pompeo’s criticism of China’s lending policy to African countries for causing high levels of debt that countries are unable to Pay it, adding that China is the largest creditor to African governments at the moment.
Technical analysis
Gold price shows more side trading and narrow range around the level of 1765.00, and continues to move within the upward channels that appear on the above chart, where he gets a good positive support from the EMA50, waiting for the resumption of the bullish track that targets the levels of 1800.00 then 1840.00 as the next main stations.
Thus, the positive scenario will remain valid for the upcoming period, noting that breaking the levels of 1747.50 then 1729.00 will stop the expected rise and press the price to start a bearish correction in the intraday basis.
The expected trading range for today is between 1747.00 support and 1790.00 resistance
Expected trend for today: Overall bullish
