Gold analysis 01.09.2020

Gold futures rose by more than one percent during the Asian session amid the decline of the US dollar index to its lowest since late April of 2018, according to the inverse relationship between them on the cusp of developments and economic data expected today, Tuesday, by the US economy, the largest economy in the world.

At exactly 05:46 a.m. GMT, gold futures contracts for December delivery rose 1.12% to trade at $ 1,995.80 an ounce, compared to the opening at $ 1,973.70 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,978.60 an ounce, with the US dollar index declining 0.39% to 91.80 compared to the opening at 92.17.

Markets are looking forward to unveiling the final reading of the Manufacturing PMI by Markit from the United States, which may reflect the stability of the expansion at a value of 53.6, unchanged from the initial reading for last month and against 50.9 last July, before we witness the US economy. The release of the construction spending index reading, which shows an increase of 1.0%, compared to a decline of 0.7% in June.

Up to the disclosure by the largest industrial country in the world for a reading of the Industrial Supply Institute index, which may show an expansion to 54.6 compared to 54.2 in July, while the reading of the same index measured by prices may indicate a decrease in the breadth to 52.0 compared to 52.3, before we witness the participation of the committee member Open Market FBI and Fed Deputy Governor Lyle Brainard in a hypothetical discussion on the economic outlook hosted by the Brookings Institution.

Technical analysis

The price of gold opens today with a new high to move away from the level of 1967.90, which supports the continuation of our expectations for an effective bullish trend in the coming sessions, and the way is open to head towards our next target at 2008.80, noting that surpassing this level will push the price to visit the recently recorded peak at 2074.87.

Therefore, we will continue suggesting the bullish trend in the intraday and short term, noting that a break of 1967.90 will pressure the price to visit 1934.86 before returning to rise again.

The expected trading range for today is between 1960.00 support and 2010.00 resistance.

The expected general trend for today: Bullish.