Gold analysis 24.08.2020

Gold prices fell during trading on Monday, as trading began the week with pressure on the precious metal, which is struggling to return above $ 2000 an ounce so far.

Analysts said that gold entered a period of sideways movement after the historic rise that pushed it above the $ 2,000 barrier for the first time ever.

Some believe that the yellow metal is witnessing a corrective movement that will contribute to re-adjusting its path in the long run.

This comes despite the continued decline of the dollar against most of the major currencies, and last week's close in a bearish range.

Investors are closely following the developments of the "Corona" crisis, as the Food and Drug Agency officially announced the approval of the use of blood plasma of those recovering from the virus in the treatment of other infected people.

The dollar index (against a basket of major currencies) settled negatively at 93.2 points, which is the highest level so far, while the lowest level is at 93.1.

In terms of trading, spot gold contracts fell by 04:42 GMT by 0.3% to 1940.7 dollars an ounce, and the highest price was at 1949 dollars and the lowest price was at 1937.6 dollars.

Technical analysis

The price of gold continues to fluctuate around 1934.86, and it faces continuous negative pressures. By carefully looking at the chart, we find that the chart is drawing a head and shoulders pattern that has targets that surpass the support of the main ascending channel to cause a possible shift in the short-term direction to the downside.

Therefore, we prefer to stay neutral until we get a clearer signal for the next trend, noting that a break of 1929.50 will complete the formation of the negative pattern and push the price to achieve negative targets that start at 1901.80 and extend to 1860.90 while breaching 1955.90 represents the key to the resumption of the main bullish trend whose targets begin At 1967.90 then 2008.80.

The expected trading range for today is between 1900.00 support and 1968.00 resistance.

The expected overall trend for today: Neutral.