31.08.2020
Futures contracts for gold prices fluctuated in a narrow range that is tilted to rise during the Asian session with the decline of the US dollar index to its lowest since August 18, when it tested its lowest since the beginning of May 2018 according to the inverse relationship between them after the developments and economic data that we followed today, Monday. The Chinese economy is the largest consumer of the mineral in the world amid scarce economic data early this week by the US economy.
At exactly 05:15 a.m. GMT, gold futures contracts for next December delivery rose 0.24% to trade at $ 1,978.60 an ounce, compared to the opening at $ 1,973.90 an ounce, knowing that the contracts started the session on a downward price gap after it was concluded Last week's trading at $ 1,974.90 per ounce, with the US dollar index declining 0.05% to 92.25 compared to the opening at 92.30.
We have followed up on the disclosure by the China Federation of Logistics and Procurement (CFLP) of the industrial and service sector data for the past month, which indicated that the industrial sector's expansion decreased to 51.0 compared to the previous reading for July and expectations of 51.1, while the service sector expanded to 55.2 compared to 54.2 in July, contrary to expectations for a contraction to 54.0.
Technical analysis
The price of gold starts trading today with an additional bullish tendency, to trade around the 1967.90 level and try to break it and divert from it, which supports the continuation of the expected bullish trend scenario in the intraday and short term, which aims to visit 2008.80 as a next stop.
Consequently, the bullish trend will remain dominant during the upcoming sessions, supported by the EMA50, noting that the breach of 1967.90 and stability below it may put the price under temporary negative pressure that targets testing 1934.86 areas before any new attempt to rise.
The expected trading range for today is between 1950.00 support and 2000.00 resistance
The expected general trend for today: Bullish
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