Gold analysis 20.08.2020

Gold futures rose during the Asian session, to witness the resumption of their rebound from the lowest since July 23 for the fifth session in seven sessions, with the US dollar index resuming its rebound from the top since the third of August for the sixth session in seven sessions according to the inverse relationship between them before Economic developments and data expected today, Thursday, by the US economy, the largest in the world.

At exactly 05:38 a.m. GMT, gold futures contracts for December delivery rose 1.34% to trade at $ 1,960.30 per ounce, compared with the opening at $ 1,934.40 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,970.30 per ounce, with the US dollar index declining 0.01% to 92.97 compared to the opening at 92.98.

Investors are currently awaiting the American economy to see the release of the aid claims index reading for the past week on August 15th, which may reflect a decline of 33 thousand requests to 930 thousand applications compared to 963 thousand applications in the previous reading, and the reading of continuous aid requests for last week may also appear. On the eighth of this month, a decrease of 486 thousand applications to 15.0 million applications compared to 16,486 thousand applications in the previous reading.

This comes in conjunction with the disclosure by the largest industrial country in the world of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect a contraction of the expansion to a value of 21.0 compared to 24.1 last July, before we witness the release of the leading indicators reading, which may It shows that the pace of growth has slowed to 1.0%, compared to 2.0% in June.

Other than that, we have just followed up on the Fed’s disclosure of the minutes of the Federal Open Market Committee’s meeting held on July 28-29 in which monetary policymakers at the Fed addressed the fact that the current situation surrounding the Corona pandemic could “severely affect Economic activity, employment and inflation are in the near term and pose significant risks to the economic outlook in the medium term. "

It is noteworthy that Federal Reserve Governor Jerome Powell stressed in the press conference held after the meeting at the time that the Fed was committed to using all its tools to support the recovery and reduce the negative repercussions of the Corona pandemic, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus increased to nearly 21.99 million and 775,893 died. People killed in 216 countries.

Technical analysis

The price of gold fell strongly yesterday to break the level of 1967.90 and directly touch the level of 1934.86, which forms a strong support ground in front of the price, noting that the price starts today positively to move away from the aforementioned support, which indicates that the price is on its way to start an upward wave and compensate for the losses it incurred in Past sessions.

From here, we expect to witness positive trading in the upcoming sessions supported by the positivity of the stochastic indicator, noting that our targets start at 1967.90 and extend to 2008.80, while breaking 1934.86 represents the key to incurring additional losses that reach 1901.80.

The expected trading range for today is between 1920.00 support and 2000.00 resistance.

The expected general trend for today: Bullish.