Gold analysis 07.08.2020

Gold futures fell during the Asian session to witness their rebound from the highest at all, amid the bounce of the US dollar index for the second session from its lowest since May 14, 2018, according to the inverse relationship between them after the developments and economic data that we followed about the Chinese economy, the largest consumer of minerals in the world and before Economic developments and data expected on Friday by the US economy, the largest in the world.

This comes amid investor pricing for the division of US lawmakers over the virus relief package talks and in light of concern about a second wave of Coronavirus outbreak and the threat of the White House to act on its own if it fails to reach an agreement with the Democrats in addition to the continuing escalation of tensions between the United States and China, the largest economy in Asia. And the second largest economy in the world.

At 04:44 a.m. GMT, gold futures contracts for December delivery fell 0.48% to trade at $ 2,076.40 per ounce compared to the opening at $ 2,076.40 per ounce, knowing that the contracts started trading on a rising price gap after it concluded Yesterday's trading at $ 2,069.40 per ounce, with the US dollar index rising 0.27% to 93.07 compared to the opening at 92.82.

We followed up on the disclosure of the General Administration of Customs in China of reading the Trade Balance Index, which showed that the surplus expanded to a value of 442 billion yuan, equivalent to $ 62.3 billion, compared to a surplus of 329 billion yuan, equivalent to $ 46.4 billion in June, better than the expectations that It indicated a narrowing of the surplus to a value of 291 billion yuan, equivalent to $ 42.5 billion, with the increase in exports and the decline in imports during the past month.

On the other hand, investors are currently awaiting the US economy to unveil labor market data, with the release of the employment change index reading for the non-agricultural sectors, which may reflect 1,530,000 jobs added compared to 4,800,000 jobs added in June, while the average income index reading may indicate Per hour, the decline narrowed to 0.5% from 1.2%. This is with the unemployment rate reading showing a decline to 11.1% compared to 12.3% in June.

This comes before the release of the final reading of the wholesale stocks index, which may confirm a decline of 2.0% unchanged from the previous initial reading for the month of June and against a decline of 1.2% in May, and in the midst of the focus of attention on the discussions of US lawmakers about the anticipated virus relief package Congress

Technical analysis

The price of gold will gradually crawl to the upside, approaching our awaited target, which now rises to 2083.00, and continues moving inside the bullish channel that appears in the image, to continue suggesting the bullish bias for the upcoming period, noting that surpassing the aforementioned level will extend the upside wave targeting 2150.00 areas as a next station.

The SMA 50 continues to support the price from below, supporting the chances of achieving more gains, bearing in mind that breaking 2048.00 will stop the expected rise and pressure the price to start a bearish intraday correction.

The expected trading range for today is between 2030.00 support and 2095.00 resistance.

The expected general trend for today: Bullish.