Gold analysis 03.08.2020

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to witness its rebound from its highest ever, with the dollar index rebounding for the second consecutive session from the lowest of 14 May 2018 according to the inverse relationship between them before the expected developments and economic data on Monday from The US economy is in the midst of US lawmakers' talks about the virus relief package, in the shadow of concern over new HIV cases and escalating tensions between Beijing and Washington.

At exactly 03:59 AM GMT, gold futures contracts for next December delivery decreased 0.26% to trade at $ 1,992.30 per ounce compared to the opening at $ 1,997.40 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded Trading week and last month at $ 1,985.90 per ounce, with the dollar index increased 0.01% to 93.46 compared to the opening at 93.45.

The markets are looking to reveal the final reading of the manufacturing PMI by Markit for the United States, which may reflect the stability of growth at 51.3, with little change from the initial reading of last month and against a contraction at 49.8 in June, before we witnessed by the economy. The US released the construction spending index, which shows a 1.0% increase compared to a 2.1% decline in May.

Up to disclosure by the largest industrial country in the world about the reading of the Institute of Industrial Supply index, which may show a widening of 53.6 compared to 52.6 in June, as the reading of the Institute of Industrial Supply measured in prices may clarify an expansion to the value of 52.3 compared to 51.3, and comes This is before the Fed revealed the results of the most responsible loan survey for the second quarter of this year.

Technical analysis

Gold opened the trading day today with a new rise to try to penetrate the level of 1981.20, but it faces strong resistance and finds it difficult to overcome this level, to keep the price confined between this resistance and support 1937.20, which keeps our neutral stance standing until the price is able to overcome one of these levels.

We remind that breaching the resistance will lead the price to resume the main bullish trend and achieve new gains that start at 2000.00 and extend to 2068.00, while breaking the support will pressure the price to visit 1910.10 levels and it may extend to 1866.00 as additional corrective targets.

The expected trading range for today is between 1935.00 support and 2010.00 resistance.

Expected trend for today: neutral.