Gold analysis 18.08.2020

Futures contracts for gold prices fluctuated in a narrow range tending to decline during the Asian session, to witness a rebound to the fourth session in five sessions from the lowest since July 23, amid the decline of the US dollar index to its lowest since the sixth of August, when it tested the lowest since 14 May 2018, according to the inverse relationship between them on the cusp of developments and expected economic data today, Tuesday, by the US economy, and in light of investors ’evaluation of the escalation of tensions between the United States and China, the largest consumer of the mineral in the world.

At exactly 04:53 am GMT, gold futures contracts for next December delivery rose 0.28% to trade at $ 1,999.20 an ounce compared to the opening at $ 1,993.60 an ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,998.70 per ounce, with the US dollar index declining 0.15% to 92.68 compared to the opening at 92.82.

Investors are currently awaiting the US economy to unveil the housing market data with the release of both the Housing Starts Index and the Building Permit Index, and amid expectations that the building permit reading will reflect an increase to about 1.33 million permits, compared to about 1,226 million permits last June. The home start-up reading may reflect an increase to about 1.23 million homes, compared to about 1.19 million homes in June.

Other than that, we followed yesterday the US Secretary of Commerce Wilbur Ross expressed that trade talks between Washington and Beijing are still continuing and that his country is keen to call on China to go ahead with the purchase of American agricultural products while referring to the fact that the US administration is working to fill the gaps to prevent the Chinese company Huawei from Access to American technology, and this came after US President Donald Trump's administration tightened additional restrictions on Huawei.

Technical analysis

Gold price succeeded in confirming the breach of the 1967.90 level after closing the daily candlestick above it, which supports the chances of continuing the main bullish trend that is organized inside the minor and main ascending channel that appears in the image, and the way is open to achieving our next awaited target at 2008.80, noting that breaching this level will lead the price To head towards the recently recorded high at 2074.87 as a next stop.

Therefore, we will be waiting for more upside in the coming sessions, keeping in mind that holding above 1967.90 is important to achieve the suggested targets.

The expected trading range for today is between 1965.00 support and 2020.00 resistance.

The expected general trend for today: Bullish.