Gold analysis 26.08.2020

Gold prices rose during trading today, Wednesday, in the Asian session, after two days of recording losses, with attention shifting towards "Jackson Hole" and anticipation of the speech of the President of the Federal Reserve.

Central Bank President Jerome Powell will deliver a speech on Thursday on the sidelines of Jackson Hole meetings to talk about the most prominent challenges, monetary policy steps, and measures that can be taken to face the repercussions of Corona on the US and global economies.

And gold futures for December delivery in Tuesday's session fell by 0.8%, or the equivalent of 16.10 dollars, to 1923.1 dollars an ounce.

In a related context, the dollar index rose (against a basket of major currencies) by 06:18 GMT by 0.1% to 93.1 points, and recorded the highest level at 93.1 points and the lowest level at 92.9 points.

In terms of trading, spot gold prices rose by 0619 GMT by 0.2% to 1927.8 dollars an ounce, and the precious metal recorded the highest price at 1939.9 dollars and the lowest price at 1926.8 dollars.

Technical analysis

Gold price completed the formation of the head and shoulders pattern whose features appear in the above chart, after the daily candlestick closes below the broken neckline, and a retest of this level is now underway, while the stochastic indicator gradually lost its positive momentum.

Thus, these factors support the chances of achieving a further decline in the upcoming sessions, which mainly target 1907.00 - 1901.80 levels, noting that breaching 1929.50 then 1934.86 will stop the suggested decline and lead the price to resume the main bullish trend again.

The expected trading range for today is between 1905.00 support and 1950.00 resistance

The expected general trend for today: Bearish.