Gold analysis 30.07.2020

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to witness its bounce for the second session in three sessions of its highest value ever at the levels of two thousand dollars per ounce, with the US dollar index rebounding for the second session from the lowest of May 17, 2018, according to The reverse relationship between them before the expected economic developments and data today, Thursday, by the US economy, the largest economy in the world.

At exactly 04:23 am GMT, gold futures contracts for next December delivery fell 0.22% to trade at $ 1,982.10 per ounce compared to the opening at $ 1,986.40 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded Yesterday trades at $ 1,976.70 an ounce, with the US dollar index rising 0.09% to 93.40 compared to the opening at 93.32.

Investors are currently awaiting by the American economy the disclosure of the initial reading of the gross domestic product of the United States for the second quarter, which may show the contraction of the largest economy in the world to 34.5% compared to 5.0% in the first quarter, while the initial reading may reflect the GDP measured by prices For the past quarterly quarter, stability remains at zero levels, against 1.4% growth in the first quarter.

This comes in conjunction with the issuance of the aid claims index for the last week on July 25, which may reflect an increase of 24 thousand requests to 1,440 thousand applications compared to 1,416 thousand requests in the previous reading, as the reading of the continuous benefit applications for the past week may appear on 18 of this The month increased by 3 thousand requests to 16,200 thousand requests compared to 16,197 thousand requests in the previous reading.

 Also yesterday, we watched the expiry of the FOMC meeting July 28-29, during which monetary policymakers at the Federal Reserve kept interest rates at between zero and 0.25%, and we followed the confirmation of Fed Governor Jerome Powell at the conference. The journalist he held after the meeting made a commitment to the Fed to use all of its tools to support recovery and minimize the negative consequences of the Corona pandemic.

Technical analysis

The gold price made strong gains yesterday and reached the recently recorded historical high at 1981.00, to support the continuation of our expectations for the bullish trend, with a reminder that we are waiting for a visit to the 2000.00 level as the next major station, whose breach represents the key to the rally towards 2068.00 as a next target.

Therefore, the positive scenario will remain valid and active in the upcoming sessions, provided that the price maintains its stability above 1937.20.

The expected trading range for today is between 1935.00 support and 2020.00 resistance.

Expected trend for today: bullish.