Gold price futures fluctuated in a narrow range that tilted to the back during the Asian session to witness its rebound from its highest since June 24, when it tested its highest since October 9, 2012, condoning the decline in the dollar index according to the inverse relationship between them on the cusp of Economic developments and data expected today, Monday, by the US economy, the largest economy in the world, and in light of investors' evaluation of the outbreak of the Corona virus, amid concern from a second wave, especially with the United States reconsidering plans to reopen it.
At exactly 04:43 AM GMT, gold futures contracts for next August delivery fell 0.11% to trade at $ 1,787.20 per ounce compared to the opening at $ 1,789.20 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded trading Last week, at $ 1,780.30 an ounce, while the US dollar index fell 0.15% to 97.32 compared to the opening at 97.47.
Investors are currently awaiting the release of housing market data by the US economy, with the release of existing home sales, which may show a shrinking decline to 15.0%, compared to 20.8% last April. Otherwise, the markets are looking to tomorrow for Fed Governor Jerome’s testimony tomorrow. Powell with US Treasury Secretary Stephen Mnuchin via satellite before the House Financial Services Committee in Washington.
We also followed up last Friday, the report that touched upon the fact that China sent to the United States a message that the recent American pressure, especially regarding the recent developments in Hong Kong, may endanger purchases of agricultural commodities and American exports and that Beijing may suspend its obligations under the terms of the first trade agreement with Washington. .
This came hours after the Senate approved last Thursday a bill to punish China for autonomy in the city of Hong Kong, and following US Secretary of State Mike Pompeo last week criticized the Chinese lending policy for African countries for causing high levels of debt that countries are unable to pay , Adding that China is the largest creditor to African governments at the moment.
The price of gold made positive trades in the previous sessions to settle above the level of 1765.00, reinforcing the expectations of the continuation of the bullish trend in the intraday and short term, on the way to go towards our main positive targets that start at 1800.00 and extend to 1840.00.
From here, the bullish trend scenario will remain effective for the coming period, supported by the moving average 50, organized within the bullish channels that appear in the picture, noting that the continuation of the expected rise requires stability above 1750.00 and the most important above 1730.00.
The expected trading range for today is between 1760.00 support and 1800.00 resistance.
Expected trend for today: bullish.