Gold analysis 09.10.2020

Futures contracts rose by nearly one percent to witness their rebound for the third consecutive session from the lowest since September 28, amid the rebound of the US dollar index for the eighth session in eleven sessions from its highest since July 24, according to the inverse relationship between them on the cusp of developments and data The economic anticipated today, Friday, by the US economy and in the shadow of the tension and attraction among US lawmakers about reaching an agreement on additional stimulus to support the world's largest economy in the face of the repercussions of the Corona pandemic.

At exactly 04:25 am GMT, gold futures contracts for December delivery rose 0.85% to trade at $ 1,914.50 an ounce, compared to the opening at $ 1,898.40 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,895.10 per ounce, with the US dollar index declining 0.11% to 93.45 compared to the opening at 93.56.

Investors are currently awaiting the US economy the release of the final reading of the wholesale inventories index, which may confirm an increase of 0.5%, unchanged from the previous initial reading for the month of August and compared to a decline of 0.3% last July. Otherwise, we followed yesterday the report that You mentioned the fact that US President Donald Trump telephoned the Majority Leader in the House of Representatives Kevin McCarthy and said he wanted a "big deal."

Yesterday, we also followed up the report that touched on the fact that US Secretary of the Treasury Stephen Mnuchin told Democratic US House Speaker Nancy Pelosi yesterday during their ongoing discussions about the chances of reaching a second stimulus package to face the repercussions of the Corona pandemic, that Republican President Trump wants an agreement on a comprehensive aid package, which reflects the continuing tension And the attraction between the two poles of US policy, Republicans and Democrats, towards the stimulus.

It is reported that US President Trump expressed last Wednesday that he would agree to extend a separate small stimulus package of about $ 25 billion and that he provides the necessary support to airlines, and this came hours after he tweeted to him last Tuesday on Twitter, “He instructed my representatives to stop negotiations until after the elections. When, as soon as I win, we're going to pass a major stimulus bill focusing on hardworking Americans and small businesses. "

Technical analysis

The price of gold opened today with a strong rise to breach the level of 1901.80 and start attacking the pivotal resistance that is now at 1911.00, which stops the negative scenario suggested in our recent reports and leads the price to turn higher, on its way to achieve more gains that reach 1934.86 as a next major station.

Thus, the bullish bias will be likely for today, supported by the move above the EMA 50, bearing in mind that the continuation of the bullish wave requires stability above 1901.80, as breaking this level will put the price under negative pressure again, heading towards visiting levels of 1882.00 then 1860.90 as major stations deification.

The expected trading range for today is between 1890.00 support and 1935.00 resistance.

The expected general trend for today: Bullish.