Gold analysis 21.09.2020

Futures contracts for gold prices fluctuated in a narrow range slanting to rise during the Asian session amid the decline of the US dollar index according to the inverse relationship between them amid scarce economic data at the beginning of this week by the US economy, the largest economy in the world, and looking forward to the upcoming speech of Monday by Federal Reserve Governor Jerome Powell and members of the Federal Open Market Committee.

At exactly 04:30 am GMT, gold futures contracts for next December delivery rose 0.12% to trade at $ 1,959.70 per ounce, compared to the opening at $ 1,957.30 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Last week's trading at $ 1,962.10 per ounce, with the US dollar index declining 0.16% to 92.82 compared to the opening at 92.97.

Investors are currently awaiting what Fed Governor Jerome Powell will talk via satellite, along with the rest of the FOMC members, about setting the rules for the Community Reinvestment Act, before we witness the Fed’s Deputy Governor and a member of the Federal Market Committee. The Open Lyle Brainard satellite on the Urban Institute Community Reinvestment Act.

Up to the participation of the President of the Federal Reserve Bank of New York and a member of the Federal Open Market Committee, John Williams, in a panel discussion entitled "Economic Justice: Examining the Financial Burden of Inequality and Seeking a Fair Recovery from Covid-19" in the virtual conference of the Black Caucus Foundation of the US Congress, also via satellite.

This comes hours after the expiry of the FOMC meeting on September 15-16, during which interest rates were kept between zero and 0.25%, the program to purchase Treasury bonds by $ 80 billion per month and mortgage bonds by $ 40. At least monthly, and the disclosure at the time of the expectations of members of the Federal Commission for growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

Technical analysis

The price of gold is hovering around the SMA 50, noting that the stochastic indicator is trying to gain positive momentum, waiting to stimulate the price to resume the main bullish trend, which initially targets 1967.90.

In general, we are continuing to suggest the bullish trend for the upcoming period, provided that the price maintains its stability above 1934.86 level, with a reminder that breaching the target level will extend the bullish wave to 2008.80 as a next main station.

The expected trading range for today is between 1935.00 support and 1980.00 resistance.

The expected general trend for today: Bullish.