Gold analysis 13.07.2020

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session amid the US dollar index rebounding to the seventh session in ten sessions from its highest since June 2, according to the inverse relationship between them on the threshold of developments and economic data expected today Monday by the largest US economy Economy in the world and amid hopes for more stimulus in the face of rising cases of HIV infection globally.

At exactly 04:21 am GMT, gold futures contracts for next August delivery rose 0.19% to trade at $ 1,806.80 per ounce compared to the opening at $ 1,803.40 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded trading Last week at $ 1,801.90 an ounce, with the US dollar index rising 0.18% to 96.44 compared to the opening at 96.62.

The markets are looking forward to the participation of the member of the Federal Open Market Committee and the President of the New York Federal Reserve Bank John Williams in a non-satellite symposium sponsored by the Bank of England and the New York Federal Reserve, and that comes before we witness the US Treasury unveiled a reading of the federal budget, which may reflect the deficit shrinkage to what its value $ 350.0 billion, compared to $ 398.8 billion in May.

Other than that, investors are waiting this week for the start of the activities to reveal the results of the business for major companies and major international banks, which will provide more performance on how the nerve of global economies deals with the global outbreak of the Corona virus amid a state of optimism about the timeline for discovering the effective vaccine and put it quickly in addition to expectations With additional potential political support for the US economy.

Technical analysis  

Gold price tested the support for the bullish intraday channel and starts bouncing up from there, where SMA 50 meets this support to add more strength to it, while the stochastic continues to provide positive signals.

Consequently, we continue to favor the bullish trend over the short and intraday basis, noting that our awaited targets rise to 1840.00 then 1860.00, while achieving them requires stability above 1775.00.

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

Expected trend for today: bullish.