Gold analysis 13.08.2020

Gold futures rose during the Asian session, to witness their rebound for the second session from the lowest since July 23, amid the rebound of the US dollar index for the second session from its highest since the third of August according to the inverse relationship between them on the cusp of developments and expected economic data today, Thursday from The US economy was the largest in the world, and in light of the investors 'follow-up of developments about adopting a vaccine for the Coronavirus, and about US lawmakers' talks about the virus relief package.

At 04:20 a.m. GMT, gold futures contracts for next December delivery rose 0.71% to trade at $ 1,941.00 per ounce, compared to the opening at $ 1,927.30 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,949.00 per ounce, with the US dollar index declining 0.10% to 93.28 compared to the opening at 93.37.

Investors are currently waiting for the US economy to see the release of the aid requests index reading for the past week on the eighth of August, which may reflect a decrease of 66 thousand applications to 1,120 thousand applications compared to 1,186 thousand applications in the previous reading, and the reading of continuous aid requests for last week may also appear. At the beginning of this month, a decrease of 209 thousand applications decreased to 15,898 thousand applications compared to 16,107 thousand applications in the previous reading.

This comes in conjunction with the disclosure of the import price index reading, which may indicate a slowdown in growth to 0.6% compared to 1.4% in June, while the annual reading of the same index may show a contraction of the decline to 1.7% compared to 3.8%. Otherwise, we followed yesterday expressing US House of Representatives Speaker Nancy Pelosi on the fact that the Republican and Democratic parties are still miles away in their negotiations over the virus relief package.

In another context, we also followed us yesterday, US President Donald Trump announced that his administration had concluded a deal worth $ 1.5 billion to purchase 100 million doses of the promising American "Moderna" vaccine in order to contribute to containing the Corona pandemic, and this came in conjunction with the Russian Minister of Health reported that The Russian coronavirus vaccine, which was registered Tuesday in his country and announced by Russian President Vladimir Putin, may be available within two weeks.

Technical analysis

The price of gold ended yesterday's trading below 1934.68, which constitutes a strong resistance to gold's attempts to rise, but we note that the price started today with a noticeable rise to attack this level and try to stabilize above it, which supports the continuation of the expected positive scenario for the coming period, which targets 1967.90 then 2008.80 as major stations deification.

Therefore, we await more upside today, bearing in mind that failure to confirm the breach of 1934.68 will put the price under negative pressure again, heading towards testing the areas of 1901.80, then 1860.90 initially.

The expected trading range for today is between 1900.00 support and 1980.00 resistance.

The expected general trend for today: Bullish.