Gold analysis 20.10.2020

Futures prices fluctuated in a narrow range that tends to decline during the Asian session, overlooking the rebound of the US dollar index for the fourth session from its highest since the second of October, according to the inverse relationship between them on the cusp of developments and economic data expected today, Tuesday, by the American economy, which includes the expiration of The deadline given by US House of Representatives Speaker Nancy Blossi to reach an agreement with the White House on approving the second package of stimulus before the upcoming US presidential elections.
 
At exactly 05:25 am GMT, gold futures contracts for next December delivery decreased 0.12% to trade at $ 1,904.10 per ounce compared to the opening at $ 1,906.40 per ounce, knowing that the contracts started trading on a downward price gap after it was concluded Yesterday's trading was at $ 1,911.70 per ounce, while the US dollar index fell 0.03% to 93.39 compared to the opening at 93.42.
 
Investors are currently awaiting the US economy to unveil the housing market data with the release of both the Housing Starts Index and the Building Permit Index reading, and amid expectations that the building permit reading will reflect an increase to about 1.52 million permits, compared to about 1.48 million permits last August, as well. The home start-up reading may show an increase to about 1.45 million homes, compared to about 1.42 million in August.
 
And this comes, before we witness the speech of members of the Federal Open Market Committee and New York Federal Reserve Chairman John Williams making opening remarks in a series of webinars hosted by the New York Federal Reserve, leading to the speech of Federal Reserve Vice Governor Randall Quarles about the agenda of the Financial Stability Board in Virtual meeting hosted by the Securities Industry and Financial Markets Association.
 
Other than that, the markets are looking forward to the results of the ongoing talks between Democratic Speaker of the House of Representatives Nancy Blossy with Treasury Secretary Stephen Mnuchin, which aim to put the final touches to the second stimulus package that aims to support the largest economy in the world in the face of the repercussions of the Corona pandemic, and this comes amid the tension and attraction between the poles of politics The American ruling Republican Party and Democratic Party ahead of the US presidential elections early next month.
 

Technical analysis

 
Gold price is trying to breach the 1901.80 level, which requires attention from upcoming trading, as confirmation of the breach will pressure the price to resume the downside movement and achieve negative targets that start at 1885.00 and extend to 1860.90.
 
On the other hand, we note that the stochastic oscillator is showing positive signs that may protect the price from incurring more losses and lead to the start of an intraday bullish wave targeting 1920.00 then 1934.86 areas.
 
Therefore, we prefer to stay neutral temporarily until the price confirms its position in relation to 1901.80 and then determines its next direction more precisely.
 
The expected trading range for today is between 1880.00 support and 1920.00 resistance
 
The expected overall trend for today: Neutral