Gold analysis 02.09.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to decline during the Asian session, to witness its rebound for the second session from its high since August 19, amid the bounce of the US dollar index for the second consecutive session from its lowest since late April 2018 according to the inverse relationship between them on The cusp of economic developments and data expected today, Wednesday, by the US economy, the largest in the world.

At exactly 05:11 a.m. GMT, gold futures contracts for December delivery fell 0.30% to trade at $ 1,970.80 per ounce, compared to the opening at $ 1,976.80 per ounce, knowing that the contracts started trading on a downward price gap after it was concluded Yesterday's trading was at $ 1,978.90 an ounce, with the US dollar index rising 0.18% to 92.39 compared to the opening at 92.22.

Investors are currently awaiting the US economy to reveal preliminary data for the labor market with the release of the index of change in private-sector jobs, which may reflect the acceleration of job creation to 1,250,000 jobs, compared to 167,000 jobs in July, and this comes hours before the disclosure. The day after tomorrow, Friday, the monthly report on jobs other than agricultural and unemployment rates in addition to the average hourly earnings for the month of August.

This comes before we witness, by the largest industrialized country in the world, the disclosure of the factory orders index reading, which may show a slowdown in the pace of growth to 6.0% compared to 6.2% last June, and this comes before we witness the speech of the members of the Federal Open Market Committee, each of the President of the Bank. New York Federal Reserve John Williams and Cleveland Federal Reserve Chairman Loretta Meester via satellite.

It is expected that Williams will speak at the Bretton Woods Symposium on the Coronavirus, before Meester's speech about the US economic outlook and monetary policy at the National Association for Business Economics symposium, leading to the Fed’s disclosure of the Big Book report, whose importance lies in its being issued two weeks before The meeting of the Federal Open Market Committee, which is scheduled for 15/16 of this month.

Other than that, we followed yesterday, according to Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases and White House Health Advisor that there may be a vaccine available for Coronavirus earlier than expected if clinical trials yield very positive results, and according to the latest figures issued by the Health Organization Global, the number of cases infected with Coronavirus has increased to more than 25.3 million, and 848,255 people have died in 216 countries.

Technical analysis

The price of gold faced strong negative pressure yesterday to attack the level of 1967.90, as it closed the daily candlestick above this level, but it starts today with an additional bearish tendency to settle below the aforementioned level now, which provides signs of the price's direction to incur expected losses in the intraday term, especially as it draws a negative pattern Its features are shown in the diagram above.

The contradiction between technical factors makes us prefer stopping on neutrality until we get a clearer signal for the next trend, noting that a break of 1959.00 will complete the aforementioned negative pattern and push the price to visit 1934.86 directly before any new attempt to rise, while breaching the levels of 1967.90 and 1973.50 represents the key to a recovery The main bullish trend, heading towards 2008.80 as a next positive station.

The expected trading range for today is between 1940.00 support and 1990.00 resistance.

The expected overall trend for today: Neutral.