Gold analysis 07.09.2020

Gold futures fluctuated in a narrow range slanting to an upward trend during the Asian session, to witness its rebound for the second session from its lowest since the 27th of last August, overlooking the bounce of the US dollar index for the fifth consecutive session from its lowest since late April of 2018 according to For the inverse relationship between them.

This comes after the economic developments and data that they followed today, Monday, on the Chinese economy, the largest consumer of minerals in the world, and amid a scarcity of economic data at the beginning of this week by the US economy due to the Labor Day holiday in the United States and in the shadow of market pricing, following the escalation of tensions between Washington and Beijing.

At exactly 05:42 am GMT, gold futures contracts for December delivery rose 0.14% to trade at $ 1,940.80 an ounce, compared to the opening at $ 1,938.00 per ounce, knowing that the contracts started the session on a rising price gap after it was concluded Last week's trading at $ 1,934.30 per ounce, with the US dollar index declining 0.07% to 92.77 compared to the opening at 92.84.

We have followed up on the disclosure of the General Administration of Customs in China of reading the Trade Balance Index, which showed a narrowing of the surplus to a value of 417 billion yuan, equivalent to $ 58.9 billion, against a surplus of 442 billion yuan, equivalent to $ 62.3 billion, last July, exceeding expectations Which indicated a narrowing of the surplus to 385 billion yuan, equivalent to $ 49.8 billion, with the acceleration of export growth and the widening decline in imports during the past month.

Technical analysis

The price of gold presented noticeable negative trades in the past sessions and tried to break the 1934.86 level, but we notice that the price starts positively today to trade above the aforementioned level and remains inside the main ascending channel, which keeps the main bullish trend scenario valid and effective for the upcoming period, which targets 1967.90 then 2008.80 as stops Next major.

The breach of 1947.00 will make it easier for the price to continue rising and achieving the aforementioned targets, while the stability of the daily closing above 1934.86 represents an important condition for the continuation of the expected bullish trend.

The expected trading range for today is between 1915.00 support and 1970.00 resistance.

The expected general trend for today: Bullish.