Gold Analysis 28.07.2020

Gold price futures fluctuated during the Asian session to witness touching the levels of two thousand dollars per ounce for the first time in its history before bouncing to stabilize the highest levels of the opening amid the US dollar index rebound to the second session from the lowest since 14 June 2018 according to the inverse relationship between them before the developments and economic data Expected today, Tuesday, by the US economy, the largest economy in the world, which includes the launch of the activities of the Federal Open Market Committee meeting July 28-29.

At exactly 04:00 am GMT, gold futures contracts for next December delivery rose 0.03% to trade at $ 1,963.70 per ounce compared to the opening at $ 1,963.20 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded Yesterday's trading was $ 1,955.40 an ounce, while the US dollar index rose 0.26% to 93.81 compared to the opening at 93.56.

Investors are currently waiting for the US economy to disclose housing market data with the release of the annual reading of the house price index, which may show accelerated growth to 4.1% compared to 4.0% last May, before and before the disclosure by the largest industrialized country in the world for a reading The Richmond Industrial Index, which may reflect a widening of its value of 5 versus the stability at zero levels of 32.3 last June.

This comes in conjunction with the release of the consumer confidence index, which may show a shrinkage of expansion to 94.0 compared to 98.1 in June, leading to the launch of the FOMC meeting held today Wednesday via satellite in Washington, which is expected to keep manufacturers The Federal Reserve's monetary policy on interest rates is between zero and 0.25% for the third meeting in a row.

Technical analysis

Gold price started trading today with a new bullish rush to approach our waited target at the $ 2000.00 barrier, as the demand for the precious metal continues as a safe haven, but we note that the price is facing pressure from a selling wave and taking profits that may force the price to make a downward correction during the upcoming sessions, where we note that The price begins with testing the 23.6% Fibonacci retracement level for the upside wave that started from 1794.85 areas.

Therefore, we prefer to pause on neutral temporarily due to the possibility that the price will witness strong and mixed trading now, noting that a break of 1937.20 will press the price to make more bearish correction and target 1910.10 levels and it may extend to 1866.00 before any new attempt to rise, while consolidation above it will lead The price to resume the main bullish trend, noting that exceeding the 2000.00 level will extend the gold gains to reach the 2068.00 areas.

The expected trading range for today is between 1900.00 support and 2000.00 resistance.

Expected trend for today: neutral.