Gold analysis 31.07.2020

Gold price futures rose during the Asian session to witness stability near its highest ever, with the US dollar index retreating to its lowest level on May 14, 2018 according to the inverse relationship between them after the developments and economic data that were followed by the Chinese economy, the largest consumer of the global gloss, and before developments and economic data On Friday, the US economy is expected to be the largest in the world.

At exactly 04:06 AM GMT, gold futures contracts for next December delivery rose 0.80% to trade at $ 1,989.40 per ounce compared to the opening at $ 1,973.60 per ounce, as the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,966.80 an ounce, with the US dollar index down 0.21% to 92.63 compared to the opening at 92.83.

We have followed the disclosure by the China Federation of Logistics and Procurement (CFLP) on the readings of the Industrial and Service Purchasing Managers Indexes, which indicated the expansion of the industrial sector to a value of 51.1 compared to 50.9 last June, contrary to expectations that the expansion of the expansion to 50.8, while the expansion of the service sector to Its value was 54.2 compared to 54.4 in June, contrary to expectations that the expansion would decrease to 54.5.

On the other hand, investors are currently awaiting by the US economy the disclosure of personal spending and income data, which may reflect the slowdown in personal spending growth to 5.3% compared to 8.2% last May, and the decline in personal income decreased to 0.8% compared to 4.2% in May. , While a reading of the core personal consumption expenditures index may show accelerated growth to 0.2% versus 0.1% in May.

This also comes in conjunction with the disclosure of the unit cost index reading, which may reflect a slowdown in growth to 0.6% compared to 0.8% in the first quarter, and before we witness the disclosure of industrial sector data for the largest industrial country in the world with the release of the Chicago PMI reading, which The contraction may reflect a contraction of 44.0 versus 36.6 in June.

To reveal the final reading of the University of Michigan's index of consumer confidence, which may show a shrinkage in amplitude to 72.9 compared to 73.2 in the first reading prior to the current month and against expansion at 78.1 in June, with the release of the consumer expectations reading for July for one year to come and five years to come.

Technical analysis

The gold price tested the 1937.20 level and found strong support there, to bounce up and try to restore the bullish trend, noting that we need to get a clearer signal for the next direction, which makes us prefer to continue neutral until the price confirms that the mentioned support is broken or the breakout of the 1981.20 resistance.

We point out that the breach of the mentioned support will pressure the price to make more bearish correction whose next targets are located at 1910.10 and extend to 1866.00 while breaching the resistance represents the key to resuming the main bullish trend that targets 2000.00 levels then 2068.00 as the next main stations.

The expected trading range for today is between support 1910.00 and resistance 2020.00.

Expected trend for today: neutral.