GOLD analysis 24.09.2020

Futures contracts for gold prices fluctuated in a narrow range tending to decline during the Asian session, to witness the lowest since July 24, amid the rise of the US dollar index to the highest since the 22nd of the same month, according to the inverse relationship between them on the cusp of developments and economic data expected today, Thursday, by the economy The US, which includes the actions of the second half of the semi-annual testimony of Fed Governor Jerome Powell and US Treasury Secretary Stephen Mnuchin before Congress and amid growing concern the recent tensions on the Korean Peninsula.

At exactly 05:47 a.m. GMT, gold futures contracts for December delivery fell 0.47% to trade at $ 1,858.20 per ounce compared to the opening at $ 1,866.90 per ounce, knowing that the contracts started trading on a downward price gap after it was concluded Yesterday's trading at $ 1,868.40 per ounce, with the US dollar index rising 0.05% to 94.43 compared to the opening at 94.38.

Investors are currently awaiting the US economy for the release of the aid claims index reading for the past week, on September 18th, which may reflect a decline of 15,000 requests to 845,000 requests compared to 860,000 requests in the previous weekly reading, and the continuous aid requests reading for the week may also appear Last month, on the 11th of this month, there was a decrease of 289,000 requests to 12,339,000, compared to 12,628,000.

This coincides with the launch of the second half of the bi-annual certification of Federal Reserve Governor Jerome Powell as well as with Treasury Secretary Stephen Mnuchin before the Senate Banking Committee on the "CARES" Act, and this comes hours after Powell testified yesterday before a committee The choice of the House of Representatives in Washington regarding the economic consequences of the Corona pandemic on the largest economy in the world.

We would like to point out that Powell said last Tuesday in the first half of his semi-annual testimony before Congress, specifically before the House Financial Services Committee, that the Federal Reserve had temporarily relaxed a number of banking regulations and was open to doing more of that, while referring to the fact that small banks had You bear a greater burden and are exposed to greater things like mortgages.

Powell also noted at the time that a search was made for how not to respond in the commercial real estate market with borrowers, explaining that it is difficult to find a place to have an impact, explaining that the Federal Reserve does not see a demand for very small loans by individual borrowers within a lending program. Main Street, and that corporate bond purchases support financial conditions in the corporate credit market.

Technical analysis

Gold price succeeded in achieving our awaited target at 1860.90 and is trying to break it, which supports the chances of extending the bearish wave in the short and medium terms, supported by the negative pressure that the EMA 50 represents, noting that the next negative leg reaches 1794.85.

Consequently, the bearish trend will remain likely for the upcoming sessions, bearing in mind that the consolidation of 1860.90 in front of negative attempts will push the price to achieve intraday gains targeting the initial visit of 1901.80 before determining the fate of the next trend more clearly.

The expected trading range for today is between 1830.00 support and 1880.00 resistance.

The expected general trend for today: Bearish.