Gold analysis 04.08.2020

Gold price futures fluctuated in a narrow range tilted toward decline during the Asian session to witness its bounce for the second consecutive session from the top at all, condoning the decline of the US dollar index according to the inverse relationship between them before the economic developments and data expected on Tuesday by the American economy and amid US lawmakers' talks About the virus relief package, in the shadow of concern about the emergence of new cases of coronavirus and the escalation of tensions between Beijing and Washington.

At exactly 03:54 AM GMT, gold futures contracts for next December delivery fell 0.04% to trade at $ 1,992.70 per ounce compared to the opening at $ 1,993.50 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded Yesterday's trading was $ 1,986.30 an ounce, while the US dollar index fell 0.02% to 93.53 compared to the opening at 93.55.

Investors are currently awaiting by the US economy, the largest industrial country in the world, the release of the factory orders index, which may show a slowdown in the pace of growth to 5.1% compared to 8.0% last May, and this comes in conjunction with the disclosure of the consumer confidence statistic by the daily actions of investors That may reflect the contraction in contraction to 45.3 compared to 44.0 last July.

Technical analysis

The price of gold is back to volatility near the pivotal resistance 1981.20, and we are still waiting for a clearer signal for the next direction by breaching this resistance or breaking support 1937.20 to determine the next direction more accurately, which makes us continue in our neutral position until now.

We recall that breaching the resistance will lead the price to continue the main bullish trend and achieve new historical highs levels that start at 2000.00 and extend to 2068.00 while breaking support will pressure the price to make a more bearish correction that targets 1910.00 levels and may extend to 1888.00 before any new attempt to rise.

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

Expected trend for today: neutral.