Gold analysis 17.07.2020

The gold price fluctuated in a narrow range tilted to the upside during the Asian session while still in the first weekly losses in six weeks, with the US dollar index resumed the decline marches that stopped yesterday for the first time in five sessions according to the inverse relationship between them on the threshold of developments and economic data expected today, Friday, by the American economy, the largest economy in the world.

At exactly 03:43 am GMT, gold futures contracts for next August delivery rose 0.06% to trade at $ 1,797.90 per ounce compared to the opening at $ 1,796.90 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,800.30 an ounce, with the US dollar index down 0.01% to 96.26 compared to the opening at 96.27.

Investors are currently awaiting the release of the housing market data by the US economy, with the release of both the beginning construction index and the building permit index, and amid expectations that the reading of building permits will reflect a rise to about 1.17 million permits, compared to about 0.97 million permits last May. Construction readings may reflect an increase to about 1.30 million homes compared to about 1.22 million homes in May.

This comes before we witness the disclosure of the initial reading of the University of Michigan's index of consumer confidence, which may show a widening to 79.0 compared to 78.1 in the previous reading last June. Otherwise, we followed yesterday that Johnson & Johnson announced that it will start next week the stage The first of her experimental vaccines for the Coronavirus.

Technical analysis

Gold price provided negative trades to move without supporting the bullish intraday channel, and we notice that SMA 50 is trying to protect the price from incurring more losses, while the stochastic gained positive momentum over the intraday timeframes.

Consequently, these factors support the chances of resuming the main bullish trend, whose next targets are located at 1850.00 then 1865.00, taking into consideration that breaking the 1787.00 level will stop the expected rise and press the price to start a descending correction wave in the intraday basis.

The expected trading range for today is between 1787.00 support and 1830.00 resistance.

Expected trend for today: bullish.