Gold analysis 08.09.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the fifth session from its high since August 19, amid the rebound of the US dollar index for the sixth session in a row from its lowest since late April 2018 according to the inverse relationship between them on The cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world, and amid investor pricing, as tensions escalate between Washington, Beijing, the United Kingdom, and the European Union.

At exactly 05:44 am GMT, gold futures contracts for December delivery fell 0.31% to trade at $ 1,932.00 per 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 Yesterday's trading at $ 1,934.30 an ounce, with the US dollar index rising 0.08% to 93.14 compared to the opening at 93.06.

Investors are waiting for the US economy to reveal the consumer credit index reading, which may reflect an increase to $ 12.9 billion compared to $ 8.9 billion last June. Otherwise, we followed up yesterday, US President Donald Trump expressed that there is a possibility to separate the US economy. On China and that decision will not lead to extensive financial losses, adding that the World Trade Organization has become much better for America, with reference to the fact that China faces the risk of facing separation from the United States or exposure to huge tariffs.

The Republican US President Trump also announced that his country will ban federal contracts for companies that use Chinese sources, while expressing that because of the Democratic candidate for the upcoming US presidential elections in November, John Biden, China has closed about 70 thousand companies and that members of the Democratic Party do not want to reach To agree on a new stimulus package for the US economy with the Republicans, as they know it is in the economy's favor.

Technical analysis

Gold price ended yesterday's trading below 1934.86, which puts the price under expected negative pressure during the upcoming sessions, on its way to test the 1901.80 level mainly, supported by the SMA 50.

Thus, the bearish bias will be likely for today, bearing in mind that breaching 1934.86 - 1938.00 levels will stop the expected decline and lead the price to resume the main bullish trend again.

The expected trading range for today is between 1910.00 support and 1945.00 resistance.

The expected general trend for today: Bearish.