Gold analysis 21.08.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to rise, to witness its rebound to the sixth session in eight sessions from its lowest since July 23, with the dollar index declining according to the inverse relationship between them before the developments and economic data expected today, Friday, by the US economy, following the announcement by Pfizer And Bio-n-Tech reported that their joint coronavirus vaccine was in a way for regulatory review by early October, and the Chinese Ministry of Commerce reported the imminent resumption of trade talks between Washington and Beijing.

At 04:20 a.m. GMT, gold futures contracts for next December delivery rose 0.13% to trade at $ 1,958.20 an ounce compared to the opening at $ 1,955.60 an ounce, knowing that the contracts started the session on a rising price gap after it closed Yesterday's trading at $ 1,946.50 an ounce, with the US dollar index declining 0.07% to 92.64 compared to the opening at 92.71.

The markets are awaiting the unveiling of the preliminary reading of the Industrial and Service Purchasing Managers' Index, Markit from the United States, which may reflect the expansion of the industrial sector in the largest industrial country in the world to 51.9 compared to 50.9 in July, and the expansion of the service sector to 50.9 compared to 50.0 before the reading showed The Existing Home Sales Index rose 14.7% to 5.40 million homes, compared to a 20.7% rise, at 4.72 million homes last June.

Other than that, we followed, last Wednesday, the Federal Reserve’s disclosure of the minutes of the FOMC meeting held on July 28-29 in which monetary policymakers at the Federal Reserve 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. "

Technical analysis

Gold price maintains its cohesion above 1934.86 and begins to offer positive trades in an attempt to divert from the aforementioned level, thus maintaining the bullish trend scenario valid for the upcoming period, waiting for the breach of 1967.90 to open the way for a visit to 2008.80 as a next main station.

Consequently, we await more upside during the coming sessions, noting that a break of 1934.84 will pressure the price to incur additional losses that start at 1901.80 before any new positive attempt.

The expected trading range for today is between 1930.00 support and 2000.00 resistance.

The expected general trend for today: Bullish.