Gold analysis 10.08.2020

Futures contracts for gold prices fluctuated in a narrow range tending to decline during the Asian session, to witness its rebound for the second consecutive session from the highest ever, overlooking the decline of the US dollar index according to the inverse relationship between them after developments and economic data that we followed about the Chinese economy, the largest consumer of metals in the world and before developments And economic data expected today, Monday, by the US economy, the largest economy in the world, and with investors' evaluation of the escalation of tensions between Washington and Beijing.

At 04:18 a.m. GMT, gold futures contracts for December delivery fell 0.25% to trade at $ 2,039.70 an ounce compared to the opening at $ 2,044.80 an ounce, knowing that the contracts started the session on a rising price gap after it concluded Last week's trading was at $ 2,028.00 per ounce, while the US dollar index declined 0.08% to 93.33 compared to the opening at 93.40.

We have followed the disclosure of the Chinese National Bureau of Statistics on inflation data with the release of the annual consumer price index reading, which showed the acceleration of growth to 2.7% compared to 2.5% last June, surpassing the expectations that indicated an acceleration of growth to 2.6%, as for the annual reading of the index. Producer prices showed a contraction of deflation to 2.4% versus 3.0%, also surpassing expectations that indicated a contraction of deflation to 2.5%.

On the other hand, investors are currently awaiting the American economy for the release of a statistical reading on employment opportunities and job turnover, which may reflect a decline to about 5.30 million compared to about 5.40 million last May, and this comes in the wake of the labor market data showed at the end of last week, a decline The unemployment rate rose to 10.2%, compared to 11.1 in June.

In the same context, last Friday's reading of the employment change index for sectors other than agricultural showed about 1,763 thousand jobs added compared to 4,791 thousand added jobs, which was revised from about 4.8 million jobs added in June, while the average hourly income index reading reflected an increase. 0.2% against a decline of 1.3%, beating expectations that the decline would narrow to 0.5%.

In another context, we followed yesterday the signing of Republican US President Donald Trump, a series of executive orders to extend unemployment benefits, following the collapse of the White House talks with Congress, amid differing views of the Democratic Party, which has the majority of the House of Representatives, and the Republican Party, which has the majority of the Senate, about the talks of the virus relief package Amid growing concern over the outbreak of a second wave of Coronavirus.

This comes after the forty-fifth US President Trump last week threatened to act on his own if he failed to reach an agreement with the Democrats, and those executive orders will save $ 400 a week in unemployment aid, and that is less than $ 600 in the week that was passed before. Congress earlier this year following the coronavirus pandemic.

Technical analysis

Gold price touched and stabilizes at the support of the ascending channel that appears on the image, coinciding with the start of positive signs appearing through the stochastic indicator, while the SMA 50 continues to provide positive support for the price.

Thus, these factors encourage us to continue suggesting the bullish trend for the upcoming period, whose main targets start at 2087.00, bearing in mind that breaking 2024.00 will stop the suggested rise and pressurize the price to make a bearish correction, whose main targets start at 1968.00.

The expected trading range for today is between 2000.00 support and 2070.00 resistance.

The expected general trend for today: Bullish.