Gold analysis 02.09.2020

Gold futures contracts fell by nearly 1 percent during the Asian session amid the US dollar index rebounding for the second session from its lowest since September 22, according to the inverse relationship between them on the cusp of developments and economic data expected today, Friday, by the US economy, the largest economy in the world, and amid the market evaluation. The developments of the US Congress reaching a stimulus package and the severity of the second wave of the Coronavirus.

At 04:24 am GMT, gold futures contracts for December delivery fell 0.66% to trade at $ 1,898.50 an ounce compared to the opening at $ 1,911.00 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,916.30 an ounce, amid the US dollar index rose 0.21% to 93.93 compared to the opening at 93.74.

Investors are currently awaiting the US economy to disclose labor market data with the release of the employment change index reading for sectors other than agricultural, which may reflect 900 thousand added jobs compared to 1,371 thousand jobs added in August, while the average hourly income index reading may indicate an acceleration. Growth to 0.5% versus 0.4%. This is with the unemployment rate reading showing a decline to 8.2%, compared to 8.4% in August.

This comes in conjunction with the speech of a member of the Federal Open Market Committee and Chairman of the Philadelphia Federal Reserve, Patrick Harker, about the labor market in a webinar, and before we witness by the largest industrialized country in the world the disclosure of the factory orders index reading, which may show a slowdown in growth to 1.5% compared to 6.4% in July, coinciding with the release of the University of Michigan's index of consumer confidence and consumer expectations of inflation for the past month.

Other than that, we followed yesterday the approval of the US House of Representatives bill for a fiscal stimulus package worth $ 2.2 trillion supported by Democrats, but the bill was notably rejected by Republicans, and this came after the failure of talks between House Speaker Nancy Pelosi and the US Treasury Secretary Stephen Mnuchin, in order to reach a bipartisan agreement on the second stimulus package to face the repercussions of the Corona pandemic.

In another context, we just followed a tweet by US President Donald Trump on Twitter, in which he expressed that the results of the Coronavirus test for his help Hope Hicks were positive, and that he and First Lady Melania Trump are waiting for their test results and that they will start the quarantine process, according to the latest figures issued by the Health Organization The global number of HIV cases increased to more than 33.84 million and 1,010,634 people were killed in 235 countries.

Technical analysis

Gold price made an attempt to breach the level of 1901.80, but it starts today with a noticeable bearish tendency to move away from this level, which maintains the bearish trend scenario effective for the upcoming period, which targets 1877.00 then 1860.90 as the next major stations.

The stochastic oscillator is providing negative signals that support the expected decline, which will remain valid as long as 1901.80 is not breached and stability above it.

The expected trading range for today is between 1870.00 support and 1910.00 resistance.

The expected general trend for today: Bearish.