Gold analysis 07.07.2020

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session, neglecting the positive stability. Globally, concern about a second outbreak of corona virus is spreading.

At exactly 04:13 AM GMT, gold price futures for next August delivery rose 0.05% to trade at $ 1,794.80 per ounce compared to the opening at $ 1,793.90 per ounce, knowing that the contracts started the session’s trading on an upward price gap after it concluded trading Yesterday at $ 1,793.50 an ounce, while the US dollar index rose 0.01% to 96.77 compared to the opening at 96.76.

Investors are currently awaiting by the US economy the disclosure of labor market data with the release of a job reading and job turnover reading that may reflect a decrease to 4.70 million compared to 5.05 million last April, and that comes before we witness the talk of a member of the Federal Open Market Committee and a deputy Fed Governor Randall Carls on the Financial Stability Board at the Treasury Club food symposium online.

This comes hours after the data showed the US labor market for the month of June last Thursday, unemployment rates fell to 11.1% compared to 13.3% in May, outperforming the expectations that indicated a decline to 12.4%, with the reading of the employment change index for sectors other than Agri created 4,800,000 jobs compared to 2,699,000 added jobs in May, beating expectations for 3,037,000.

In the same context, the average hourly earnings reading last week showed that the decline widened to 1.2% compared to 1.0% in May, contrary to expectations that the decline will decrease to 0.8%. This came in conjunction with the last week’s claims subsidy index also showed on June 26 at the time, declining by 55 thousand applications to 1,427 thousand applications compared to 1,482 thousand requests in the previous reading.

Technical analysis

The price of gold provided noticeable positive trading yesterday, to succeed in returning to the bullish intraday channel that appears in the picture, adding more support to the continuation of the bullish scenario scenario in the intraday and short term, awaiting further gains to visit the levels of 1800.00 then 1850.00 that represent our next positive goals.

SMA 50 continues to support the bullish wave, as it carries the price from below, noting that the continuation of the expected rise requires stability above 1770.00 and most importantly above 1756.00.

The expected trading range for today is between 1770.00 support and 1810.00 resistance.

Expected trend for today: bullish.