Gold analysis 14.07.2020

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session, to witness its bounce back to the third session in five sessions from its highest since September 19, 2011, amid the positive stability of the US dollar index according to the inverse relationship between them after the developments and economic data that they followed from the Chinese economy The largest consumer of metals globally and on the cusp of developments and economic data expected today Tuesday by the US economy, the largest economy in the world.

At exactly 03:39 am GMT, gold futures contracts for next August delivery fell 0.24% to trade at $ 1,800.80 per ounce compared to the opening at $ 1,805.20 per ounce, knowing that the contracts started the session’s trading on a falling price gap after it concluded trading Yesterday at $ 1,814.10 an ounce, with the US dollar index rising 0.05% to 96.56 compared to the opening at 96.52.

We have followed the Chinese economy, the largest economy in Asia, and the second largest in the world. The Trade Balance Index reading showed that the surplus has shrunk to 329 billion yuan, equivalent to $ 46.4 billion, compared to 443 billion yuan, equivalent to $ 62.9 billion last May, worse. From expectations that the surplus will shrink to 410 billion yuan ($ 58.3 billion), as imports increased more than exports during the past month.

On the other hand, investors are currently waiting for the US economy to disclose inflation data with the release of the CPI reading that may show 0.5% growth versus a 0.1% contraction in May, as the substantial reading of the same indicator may show 0.1% growth versus 0.1% contraction While the annual reading of the index may reflect the acceleration of growth to 0.6% versus 0.1%, and the substantial annual reading may show a slowdown in growth to 1.1% versus 1.2%.

Technical analysis

The price of gold faces intraday negative pressure to test the support of the bullish sub-channel that appears in the picture, accompanied by the approach of the stochastic indicator from oversold areas in the sale, and we notice that the EMA50 meets the mentioned support to add more strength to it.

Consequently, these factors encourage us to continue to suggest the bullish trend for the next period, which targets 1840.00 then 1860.00 levels as the next main stations, noting that a break of 1777.00 will stop the expected rise and press the price to start a downside corrective wave over the intraday basis.

The expected trading range for today is between 1785.00 support and 1830.00 resistance.

Expected trend for today: bullish.