Gold analysis 19.08.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to decline during the Asian session, to witness its rebound to the fifth session in nine sessions from its highest ever, with the US dollar index rebounding for the second session from its lowest since late April 2018 according to the inverse relationship between them before developments and data Economic anticipated on Wednesday by the US economy and in light of investor evaluation of the escalation of tensions between the United States and China, the largest consumer of the mineral in the world.

At exactly 05:25 a.m. GMT, gold futures contracts for December delivery fell 0.42% to trade at $ 2,002.20 an ounce compared to the opening at $ 2,010.50 an ounce, knowing that the contracts began trading on a downward price gap after it concluded Yesterday's trading at $ 2,013.10 per ounce, with the US dollar index rising 0.12% to 92.33 compared to the opening at 92.22.

Investors are currently awaiting the US economy. The Federal Reserve unveiled the minutes of the Federal Open Market Committee meeting held on July 28-29, in which monetary policymakers at the Federal Reserve Bank at the time kept short-term reference interest rates at zero levels. Between zero and 0.25%.

Technical analysis

Gold price shows negative trades after it found strong resistance at the 2008.80 barrier, heading towards a possible test of the support floor that it formed above the 1967.90 level after its previous breach, coinciding with the stochastic indicator rid of the negative momentum, waiting for a rebound to the upside to resume the main bullish trend, whose targets begin with a breach 2008.80 to confirm opening the way towards 2074.87.

From here, we will continue suggesting the overall bullish trend, preceded by some temporary decline expected to test the aforementioned support, bearing in mind that breaking this support will pressure the price to achieve more decline and test 1934.86 areas and may extend to 1901.80 before any new attempt to rise.

The expected trading range for today is between 1970.00 support and 2030.00 resistance.

The expected general trend for today: Bullish.