Gold analysis 28.09.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to rise during the Asian session, to witness its retracement of the second session in three sessions from its lowest since July 22, amid the decline of the US dollar index for the second session from its highest since the 24th of the same month according to the inverse relationship between them amid The lack of economic data from the major global economies at the beginning of this week, with an eye on the European Central Bank's conservative speech, Christine Lagarde, and the speech of the Federal Reserve Committee member Loretta Meester, later Monday.

At 06:40 am GMT, the futures contract for gold prices for next December delivery rose 0.16% to trade at $ 1,865.70 per ounce, compared to the opening at $ 1,862.70 per ounce, knowing that the contracts started trading on a downward price gap after it was concluded Last week's trading at $ 1,866.30 per ounce, with the US dollar index declining 0.12% to 94.48 compared to the opening at 94.60.

Otherwise, investors await the start of the final round of talks between the United Kingdom and the European Union in Brussels regarding the trade agreement after Brexit, and it is noteworthy that the negotiations between them on reformulating future relations are stalled due to the conflicting views on several key points, most notably immigration and the Union. Customs, which opens the way for Britain's exit without an agreement with the Union on 15 October.

On the other hand, investors are currently awaiting the American economy for what will be revealed by a member of the Federal Open Market Committee and President of the Cleveland Federal Reserve, Loretta Meester, about equality in a webinar hosted by the African American Chamber of Commerce in Pennsylvania, and the markets are looking forward this week for many talks. A member of the Federal Open Market Committee.

This comes hours after the expiration of the semi-annual testimony of Federal Reserve Governor Jerome before the US Congress, both of the House Financial Services Committee and the Senate Banking Committee, through which he reported that about $ 195 billion was provided in the Aid, Relief, and Economic Security bill in the face of The repercussions of the Coronavirus "CARES Act" in order to confront the negative repercussions of the Corona pandemic so far.

Technical analysis

Gold price fluctuates near the pivotal support level of 1860.90, and the price is still stuck between the pivotal levels represented by this support and resistance 1877.00, as the price needs to breach one of these two levels to define its next destination more clearly, and therefore, we continue to stay neutral so far.

We note that breaking the aforementioned support will pressure the price to continue the decline and achieve new negative targets that reach 1794.85, while breaching the resistance will push the price to try to recover and achieve intraday gains, starting with testing 1901.80 then 1911.00.

The expected trading range for today is between 1830.00 support and 1900.00 resistance.

The expected overall trend for today: Neutral.