Gold analysis 28.08.2020

Gold prices rose during trading today, Tuesday, to offset some of the losses it incurred in the Monday session, and the precious metal benefited from the dollar’s ​​decline against most major currencies.

Reuters reported on discussions between high-ranking officials from both the United States and China to calm tensions and strengthen economic policies.

The US Department of Commerce announced that these discussions took place by phone without giving details, but the statement confirmed that the discussions came within the consultations of the first phase of the trade agreement concluded on January 15th between the two largest economies in the world.

The precious metal futures contract for December delivery closed yesterday's session down 0.4%, or the equivalent of $ 7.80, to close at $ 1939.20 an ounce, the lowest closing level since the 27th of last July.

In a related context, the dollar index fell (against a basket of major currencies) by 05:15 GMT by 0.2% to 93.1 points, and recorded the highest level at 93.3 points and the lowest level at 93.1 points.

In terms of trading, spot gold rose, by 05:25 GMT, by 0.2% to 1943.1 dollars an ounce, and the metal recorded the highest price at 1944.1 dollars and the lowest price at 1932.6 dollars.

Technical analysis

Gold price made attempts to breach 1929.50 yesterday, but closed the daily candle above it, to start today with a bullish tendency in an attempt to divert from this level, which provides indications on the price's direction to recover during the upcoming sessions, on its way to initially test the 1967.90 level.

Therefore, a bullish bias will be likely for today, and a breach of the target will push the price to 2008.80 as a next stop, bearing in mind that any new break to 1929.50 will press the price to decline strongly and head towards levels of 1901.80 then 1860.90 as the main negative targets.

The expected trading range for today is between 1910.00 support and 1968.00 resistance.

The expected general trend for today: Bullish.