Gold analysis 10.07.2020

Gold price futures fluctuated in a narrow range tilted towards the backdrop during the Asian session to witness its bounce for the third session from the top since September 19, 2011, while it is still in the process of its fifth weekly gains in a row amid the US dollar index rebound for the second consecutive session from the lowest It has been since June 11 according to the inverse relationship between them on the threshold of developments and economic data expected Friday by the US economy, the largest economy in the world.

At exactly 03:58 AM GMT, gold futures contracts for next August delivery fell 0.15% to trade at $ 1,805.70 per ounce compared to the opening at $ 1,808.40 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded trades Yesterday at $ 1,803.80 an ounce, with the US dollar index rising 0.10% to 96.86 compared to the opening at 96.76.

Markets are awaiting from the US economy the release of the Producer Price Index, which is an initial indicator of inflation, which may reflect the stability of growth at 0.4% during June, while the substantial reading of the same index may show 0.1% growth against 0.1% contraction, and the annual reading of the index may show a contraction Shrinkage to 0.2% versus 0.8% in the previous annual reading, while the substantial annual reading may reflect accelerated growth to 0.4% versus 0.3%.

Technical analysis

Gold price shows negative trades to test the barrier of 1800.00, and we notice that the stochastic indicator gains significantly positive momentum, as it reaches the outskirts of oversold areas, while the EMA50 continues to support the price from below.

Consequently, we believe that opportunities are available to resume the main bullish trend, which is organized within the bullish channels that appear in the picture, awaiting the direction towards 1825.00 then 1855.00 levels that represent our next main targets, noting that the continuation of the bullish wave requires stability above 1770.00.

The expected trading range for today is between 1790.00 support and 1830.00 resistance.

Expected trend for today: bullish.