Gold analysis 23.07.2020

Gold price futures fluctuated in a narrow range that tilted to the back during the Asian session to witness its rebound from the top since September 9, 2011, when it tested its highest ever on the sixth of the same month regardless of the decline in the US dollar index, indicating its stability near the lowest It has since March, according to the inverse relationship between them, before the expected economic developments and data on Thursday by the US economy, the largest economy in the world.

At exactly 03:43 am GMT, gold futures contracts for next August delivery fell 0.23% to trade at $ 1,867.40 per ounce compared to the opening at $ 1,871.60 per ounce, knowing that the contracts started the session’s trading on an upward price gap after it concluded trading Yesterday at $ 1,871.60 an ounce, while the US dollar index fell 0.05% to 94.94 compared to the opening at 94.99.

Investors are currently awaiting by the US economy the issuance of the index of subsidy requests for the last week on July 18, which may reflect stability at 1.3 million requests, little changed from the previous weekly reading, while the reading of the index of continuous subsidy requests for the past week may appear on 11 of This month, a decrease of 271 thousand requests to 17,067 thousand requests compared to 17,338 thousand requests in the previous reading.

This comes before the reading of the leading indicators that may explain the slowdown in growth to 2.1% compared to 2.8% in May,

The World Gold Council revealed its half-yearly periodic report, which stated that gold-traded funds recorded during the seventh monthly increase in cash flow in June, adding 104 cubic tons of gold or the equivalent of $ 5.6 billion or 2.7% of the assets managed and that the net flows Global during the first half of 2020 amounted to $ 39.5 billion, outperforming the record increase in 2016

Technical analysis

Gold price provided new positive trades and attempts to overcome the resistance of the bullish intraday channel that appears in the picture, and gets continuous positive support from the EMA50, which supports the continuation of our expectations for the bullish trend, whose next main target is located at 1920.80.

Therefore, we await further gains during the upcoming sessions, noting that failure to surpass 1870.00 and break 1845.00 will put the price under negative pressure aimed at testing the areas of 1824.00 before any new attempt to rise.

The expected trading range for today is between 1845.00 support and 1900.00 resistance.

Expected trend for today: bullish.