Gold analysis 22.07.2020

Gold prices rose during the Asian session to witness its highest since September 9, 2011, when it tested its highest ever on the sixth of that month, and that happened in the decline in the US dollar index for the fourth consecutive session, indicating its stability near its lowest since March, according to The inverse relationship between them before the expected economic developments and data today, Wednesday, by the US economy, the largest economy in the world.

At exactly 03:59 AM GMT, gold price futures for next August delivery rose 0.87% to trade at $ 1,858.90 per ounce compared to the opening at $ 1,842.80 per ounce, as the contracts started trading the session on a falling price gap after yesterday's trades concluded at $ 1,843.90 an ounce, with the US dollar index down 0.01% to 95.10 compared to the opening at 95.11

Investors are currently awaiting the release of the housing market data by the US economy, with the release of the housing price index, which may explain the acceleration of growth to 0.3% compared to 0.2% last April, before the release of the existing home sales index, which may reflect a rise of 24.5% To about 4.77 million homes, compared to a decline of 9.7% at about 3.91 million homes last May.

Technical analysis

The price of gold provided additional positive trades with the opening of the day to reach the outskirts of the awaited target at 1870.00, and we suggest the continuation of the bullish trend in the short and medium-term, noting that exceeding the mentioned level will extend the upside wave to reach the historical high recorded at 1920.80 as the next main station.

SMA 50 continues to support the expected bullish wave, noting that failure to breach 1870.00 will pressure the price to rebound downward to initially test 1820.00 zones before any new attempt to rise.

The expected trading range for today is between 1830.00 support and 1900.00 resistance

Expected trend for today: bullish