Gold analysis 08.07.2020
Gold price futures fluctuated in a narrow range tilted toward decline during the Asian session to witness its bounce for the second session from the top since September 21, 2011 with the positive stability of the dollar index according to the inverse relationship between them amid the scarcity of economic data today Wednesday by the US economy and in the shadow of anxiety The increasing number of people infected globally with the coronavirus, especially in the continents of South and North America.
At exactly 04:38 AM GMT, gold futures contracts for next August delivery fell 0.12% to trade at $ 1,805.70 per ounce compared to the opening at $ 1,807.90 per ounce, knowing that the contracts started the session’s trading on a falling price gap after it concluded trading Yesterday at $ 1,809.90 an ounce, with the US dollar index rising 0.01% to 96.96 compared to the opening at 96.95.
We would like to point out that amid the increasing number of people affected by corona in South America, yesterday Brazilian President Javier Bolsonaro announced a coronavirus infection after symptoms appeared two days ago, and in North America, particularly in the United States, whose administration announced the withdrawal of America from the World Health Organization yesterday White House Health Adviser Anthony Fauci stressed that the Corona crisis is still serious and it has not yet reached its climax.
On the other hand, we have followed the World Gold Council’s disclosure of its semi-annual periodic report, which stated that the funds traded for gold recorded during the seventh monthly increase in their cash flow in June, adding 104 cubic tons of gold, equivalent to $ 5.6 billion or 2.7 % Of assets under management and that global net flows during the first half of 2020 amounted to $ 39.5 billion, outperforming the record increase in 2016.
In the same context, World Gold Council President Joan Carlos Artigas noted that "gold investment funds penetrated several record levels of this world, with investors seeking a safe haven from the economic downturn that created the Coronavirus" adding "to put the current flows in context during the first half of 2020, The flows of gold funds have strongly exceeded the central banks ’purchases of gold during 2018/2019.
Technical analysis
Gold price significantly resumed its positive trading yesterday evening to reach the outskirts of the first goal 1800.00, reinforcing expectations of the continuation of the main bullish trend, noting that we favor the continuation of the bullish tendency to achieve additional positive goals extending to 1825.00 then 1855.00.
Consequently, the positive scenario will remain valid for the next period supported by the EMA50, noting that stability above 1760.00 is important to achieve the proposed targets.
The expected trading range for today is between 1780.00 support and 1815.00 resistance.
Expected trend for today: bullish.
