Gold analysis 12.08.2020

Gold futures fell during the Asian session, to witness its rebound for the fourth consecutive session from its highest ever, amid the bounce of the US dollar index for the fourth session from its lowest since May 14, 2018, according to the inverse relationship between them before developments and expected economic data today, Wednesday, by the economy. The US is the largest economy in the world after Russia announced the development of its first Coronavirus vaccine.

At 04:50 am GMT, gold futures contracts for December delivery fell 1.79% to trade at $ 1,887.80 per ounce compared to the opening at $ 1,921.60 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading was at $ 1,946.30 an ounce, with the US dollar index rising 0.23% to 93.87 compared to the opening at 93.66.

Investors are currently awaiting the US economy to disclose inflation data with the release of the consumer price index reading, which may show a slowdown in growth to 0.3% compared to 0.6% last June, while the core reading of the same index may reflect the stability of growth at 0.2%. The annual reading of the index accelerated growth to 0.8% from 0.6%, while the substantial annual reading may show growth slowing down to 1.1% against 1.2%.

And this comes, before we witness the participation of a member of the Federal Open Market Committee and Chairman of the Dallas Federal Reserve, Robert Kaplan in a panel discussion on the national economy, the economy of Texas and employment prospects at a webinar hosted by the Chamber of Commerce in Lubbock, leading to the US Treasury’s disclosure of the budget reading. The federal budget, which may reflect the contraction of the deficit to the value of $ 138.3 billion, compared to $ 864.1 billion in June.

On the other hand, we followed us yesterday, Russian President Vladimir Putin announced yesterday that his country had registered the first vaccine in the world to prevent infection with the Coronavirus, stressing that the vaccine had undergone all the necessary tests and had proven effective in providing stable immunity to those who obtained it to prevent Corona, adding that his son had obtained That vaccine is after tests that took nearly two months, and the vaccine enters the third phase of clinical trials on Wednesday.

Other than that, the markets are looking forward to the upcoming trade talks between Washington and Beijing on August 15, which aim to review the two largest economic officials in the world about the implementation of the first phase of their trade agreement, and investors are also following the talks of Republicans and Democrats in the US Congress about the virus relief package. Which may have reached a dead-end among US lawmakers until further notice.

Technical analysis

The price of gold continues its strong decline to lose its recent gains and settle below the level of 1901.80, and face more negative pressure that may push the price to achieve further decline, but we note that the price is trading at the support of the main ascending channel, which may push the trades to start recovery attempts.

Now, we prefer to stay neutral until we get a clearer signal for the next direction, which we will get by breaking the support 1860.90 or breaching the resistance 1901.80, noting that breaking the aforementioned support will extend the downside wave targeting 1800.00 areas in the near term, while breaching the resistance will push Price to build a new bullish wave that targets testing the areas of 1967.90, then 2008.80 initially.

The expected trading range for today is between 1860.00 support and 1935.00 resistance.

The expected overall trend for today: Neutral.