Gold analysis 29.07.2020

Gold price futures fluctuated in a narrow range, which is backward during the Asian session, to witness its bounce for the second session from the highest ever at the levels of two thousand dollars per ounce. This is after the negative stability of the US dollar index, according to the inverse relationship between them. Before the expected economic developments and data today, Wednesday, by the US economy, the largest economy in the world, which includes the activities of the Federal Open Market Committee meeting on July 28-29, before the upcoming press conference of the Federal Reserve Governor Jerome Powell.

At 04:04 am GMT, gold futures for next December delivery fell 0.19% to trade at $ 1,968.10 per ounce, compared to the opening at $ 1,971.90 per ounce. The contracts started the trading session on an upward price gap after yesterday's trading closed at $ 1,963.90 per ounce, while the US dollar index fell 0.05% to 93.69 compared to the opening at 93.74.

Investors are currently awaiting by the American economy the disclosure of the merchandise trade balance index, which may explain the widening of the deficit to $ 75.5 billion compared to $ 74.3 billion last May, in conjunction with the release of the initial reading of the wholesale inventory index, which may reflect the shrinking decline To 0.4%, compared to 1.2% in May.

This comes before we witness the release of housing market data with the release of existing home sales, which may show a slowdown in growth to 15.6% compared to 44.3% in May, while the annual reading of the same indicator may show a widening decline to 10.2% compared to 5.1% in May. May, through to the end of the activities of the Federal Open Market Committee held in Washington via satellite.

Yesterday, we followed the Fed's announcement in a statement coinciding with the activities of the Federal Committee meeting, during which the Federal Reserve monetary policymakers are expected to keep short-term reference interest rates between zero and 0.25% for the third meeting, respectively, of its decision to extend Lending facilities until the end of next December, which were due to expire by the end of next September.

We would like to point out because the Fed made it clear in its press statement yesterday that extending the facilities for three months will facilitate the planning process by the participants in addition to ensuring that the facilities remain available to help the economy recover from the Corona pandemic while stating that the lending facilities provided strong support to the markets and helped to improve the work of the market. Work significantly, and it boosted credit for families and companies in addition to state and local governments.

Technical analysis

Gold price based on the level of 1910.10 and bounced up from there, to resume the main bullish path within the bullish channel that appears in the picture, waiting for more rise during the upcoming sessions, noting that our awaited targets start at 2000.00 and extend to 2068.00.

SMA 50 continues to support the suggested bullish wave, noting that breaking 1937.20 then 1910.10 levels will stop the expected rise and press the price to make more bearish correction.

The expected trading range for today is between 1910.00 support and 2000.00 resistance.

Expected trend for today: bullish.