Gold Analysis 30-06-2020

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to witness its bounce for the second consecutive session from its highest since June 24, when it tested the highest for it since October 9, 2012 amid resuming the US dollar index The gains marches that stopped yesterday for the first time in four sessions, according to the inverse relationship between them.

This follows economic developments and data that were followed by the largest economy in the world by minerals in China, which boosted hopes that the worst is over, and on the cusp of developments and economic data expected today Tuesday by the US economy, the largest economy in the world, which includes Federal Reserve Governor Jerome Powell’s testimony with US Treasury Secretary Stephen Mnuchin before the House Financial Services Committee in Washington.

At exactly 04:58 am GMT, gold futures contracts for next August delivery fell 0.03% to trade at $ 1,783.70 per ounce compared to the opening at $ 1,784.20 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded trading Yesterday at $ 1,781.20 an ounce, with the US dollar index rising 0.11% to 97.50 compared to the opening at 97.39.

We have followed about the Chinese economy, the second largest economy in the world and the second largest industrialized country in the world. The China Federation of Logistics and Procurement (CFLP) revealed that the Industrial and Service Purchasing Managers Index reported that the industrial sector expanded to 50.9 compared to 50.6 in May, contrary to expectations. That indicated that the expansion narrowed to 50.4, and the service sector expanded to 54.4 versus 53.6, also outperforming expectations at 53.3.

On the other hand, investors are currently awaiting by the US economy the disclosure of housing market data with the release of the annual reading of the house price index, which may show a slowdown in growth to 3.8% compared to 3.9% last April, before and before the disclosure by the largest industrial country in The world reported that the Chicago PMI reading may reflect the contraction shrinking to 45.0 compared to 32.3 in May.

This comes before we also witnessed by the largest economy in the world the release of the consumer confidence index, which may appear widening to 91.6 compared to 86.6 in May, and before we witness the speech of the Federal Open Market Committee member and New York Federal Reserve Chairman John Williams about the recession The US and the Monetary Policy Response at an online seminar hosted by the International Finance Institute.

Later in the day, markets were looking forward to the talk of Federal Open Market Committee member and Federal Reserve Governor Elle Brenard about the Dodd-Frank Act at an online seminar hosted by the Brookings Institution and the University of Michigan, leading to Fed Governor Jerome Powell’s testimony with US Treasury Secretary Stephen Mnuchin via satellite in front of the House Financial Services Committee in Washington.

In the same context, FOMC member and Federal Reserve Bank President Neil Kachkari is also expected to participate in a hypothetical discussion about racial inequality and social justice hosted by the National Association of Business Economics, and this comes in the wake of strikes in the state of Minneapolis and many of the United States Recently, James Floyd was killed by American police officers.

We would like to point out, because the Federal Reserve Governor Powell confirmed yesterday that the expectations regarding the American economy are "unconventionally uncertain", expressing that the adoption of more monetary stimulus may be necessary, and it is reported that Powell noted last week during his testimony before the Congress that there is a case of Uncertainty about the timing and strength of the potential economic recovery and that the current downturn may lead to widening inequality within his country if the matter is not contained.

Last week, Powell also mentioned in his semi-annual testimony about monetary policy before the Senate Banking Committee and the House of Representatives Financial Services Committee in the US Congress that "until confidence returns that the Corona pandemic is under control, a full recovery will not be possible" and that "the downward curve continues and with it continues Possibility of jobs falling under the risk of final loss and business closure. "

At the time, the Federal Reserve governor expressed before the Senate, in both the Senate and the House of Representatives, that it is unlikely that we will witness a complete recovery of the largest economy in the world before restoring economic confidence, with his statement that the epidemic has a greater impact on people with low incomes, and his discussion of the fact that the difference in the rise in unemployment is now a year. 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 also stressed at the time 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 economy, and that it addresses the fact that the Federal Reserve is working to ensure the effectiveness of the protection and safety systems before working to issue the dollar. Digital, adding that if it turns out that the digital currency will be beneficial to the US economy, then the Federal Reserve will issue it.

Technical analysis

The gold price did not show any strong movement in the previous sessions, to continue to fluctuate around 1770.00, and therefore, the bullish trend scenario will remain intact as it is unchanged, which targets the levels of 1800.00 then 1840.00 as the next major stations, with attention to the importance of stability above 1755.00 and 1735.00 to continue Suggested height.

The expected trading range for today is between 1760.00 support and 1800.00 resistance

Expected trend for today: bullish