Gold analysis 15.09.2020

Futures contracts for gold prices fluctuated in a narrow range that tends to rise, to witness a rebound to the fourth session in six sessions from the lowest since August 26, amid the dollar index rebound to the fourth session in five sessions from its high on the 12th of the same month according to the inverse relationship between them following developments and data The economic that we monitored about the Chinese economy, the largest consumer of minerals in the world, and on the cusp of economic developments and data expected today, Tuesday, by the US economy, which include the start of the meeting of the Federal Open Market Committee.

At exactly 05:00 am GMT, gold futures contracts for next December delivery rose 0.47% to trade at $ 1,975.40 an ounce, compared to the opening at $ 1,966.20 an ounce, knowing that the contracts started the session on a rising price gap after it was concluded Yesterday's trading at $ 1,963.70 per ounce, with the US dollar index declining 0.15% to 92.91 compared to the opening at 93.05.

We have followed up on the disclosure of the National Bureau of Statistics of China on the annual reading of the Industrial Production Index, which showed an acceleration of growth to 5.6% compared to 4.8% in July, surpassing expectations that indicated a growth of 5.1%. While the annual retail sales index showed an increase of 0.5% against a decline of 1.1%, also surpassing expectations that indicated stability at zero levels, and the unemployment rate reading showed a decrease to 5.6% against 5.7%.

On the other hand, investors are currently awaiting the American economy for the release of the import price index reading, which may indicate a slowdown in the pace of growth to 0.5% compared to 0.7% in the previous reading for July, while the annual reading of the same index may reflect a contraction of the decline to 1.0% compared to 3.3. This comes in conjunction with the release of the New York industrial index, which may reflect an expansion of 6.2%, compared to 3.7 in August.

This comes before we witness by the largest industrial country in the world the disclosure of industrial sector data with the release of the Industrial Production Index, which may reflect a slowdown in the pace of growth to 1.2% compared to 3.0% in the previous reading for July, while the reading of the utilization rate index may clarify Energy growth accelerated, to 71.7%, from 70.6% in July.

Leading to the start of the meeting of the Federal Open Market Committee September 15-16 via satellite in Washington, during which the short-term reference rates for the fifth meeting in a row are expected to remain at between zero and 0.25%, and to reveal the expectations of the members of the FOMC. Growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

This comes before we witness tomorrow the press conference of Fed Governor Jerome Powell, which he will hold half an hour after the end of the meeting to comment on the decisions of the committee that previously adopted many stimulus programs to support the economy in the face of the repercussions of the Corona pandemic, and it is mentioned that Powell stated on the sidelines of the Jackson meetings Hall has adopted the Federal Reserve's new inflation policy, targeting average inflation 2% above for some time.

Technical analysis

Gold price continues to rise, reaching the outskirts of the first awaited target at 1967.90, and it gets good positive support from the 50 moving average, while it is moving within an intraday bullish channel that supports the chances of surpassing the mentioned level and paving the way towards heading towards 2008.80, which represents our next positive target.

Therefore, we will continue suggesting the bullish trend for the upcoming period, bearing in mind that the continuation of the expected rise requires stability above 1945.00 and 1934.86 levels.

The expected trading range for today is between 1945.00 support and 1985.00 resistance

The expected general trend for today: Bullish