Gold analysis 27.07.2020

Gold prices rose during the Asian session to witness the achievement of a new record level, with the decline in the US dollar index for the seventh session, to reach its lowest since September 21, 2018 according to the inverse relationship between them before the developments and economic data expected today Monday by the American economy, the largest economy in the world.

At exactly 03:56 AM GMT, gold futures contracts for next December delivery rose 1.35% to trade at $ 1,955.00 per ounce compared to the opening at $ 1,929.00 per ounce. Whereas, the contracts started the trading session on an upward price gap after last week's trades closed at $ 1,925.20 per ounce, with the US dollar index declining 0.50% to 93.93 compared to the opening at 94.40.

Investors are currently awaiting the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a slowdown in growth to 7.0% compared to 15.7% last May. A substantial reading of the same indicator may also show a slowdown in growth to 3.5%, compared to 3.7% in May.

Technical analysis

The gold price opens today's trading with a strong rise to exceed the historical high recorded at 1920.80 and achieve more gains, on the way to heading towards our next goal that reaches the areas of $ 2000.00 per ounce, and it moves inside a new bullish intraday channel that carries the price to achieve more rise while moving average 50 continues to Provide positive support for the price.

Consequently, we continue to favor the bullish trend for the upcoming period, noting that a break of 1900.00 will pressure the price to make a bearish intraday correction before resuming the main bullish trend.

The expected trading range for today is between 1910.00 support and 1960.00 resistance.

Expected trend for today: bullish.