Gold analysis 29.09.2020

Futures contracts for gold prices fluctuated in a narrow range tending to decline during the Asian session amid the positive stability of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected today, Tuesday, by the US economy, the largest economy in the world, which includes the speech of members of the Federal Open Market Committee.

At exactly 05:55 am GMT, gold futures contracts for December delivery fell 0.01% to trade at $ 1,886.20 an ounce compared to the opening at $ 1,886.40 per ounce, knowing that the contracts started the session on a rising price gap after it was concluded Yesterday's trading was at $ 1,882.30 per ounce, amid the US dollar index rising 0.01% to 94.22 compared to the opening at 94.22.

Investors are currently awaiting the US economy for the release of the merchandise trade balance index reading, which may explain the widening of the deficit to a value of $ 81.8 billion compared to $ 79.3 billion last July, in conjunction with the release of the preliminary reading of the wholesale stocks index, which may reflect a contraction of 0.1% versus 0.3% in the previous reading for July.

This comes before we witness the disclosure of housing market data with the release of the annual home price index reading, which may show an acceleration of growth to 3.6% compared to 3.5% last June, and before the Federal Open Market Committee member and New York Federal Reserve Chairman John Williams spoke via satellite. Industrial in the US Treasury Market 2020 conference.

Markets are also looking forward to a speech by a member of the Federal Open Market Committee and Chairman of the Philadelphia Federal Reserve Bank Patrick Harker about the economics of artificial intelligence and machine learning in a webinar hosted by the Official Financial and Monetary Institutions Forum, leading to the disclosure of the Consumer Confidence Index reading, which may reflect an expansion to a value of 90.0 compared to 84.8 last August.

And this comes before we witness other members of the Federal Reserve speaking via satellite: Fed Governor Richard Clarida, who will participate in a panel discussion titled "Future Considerations for Treasury Market Resilience" at the US Treasury Market Conference, and Fed Deputy Governor Randall Quarles and who He will participate in a virtual panel discussion on financial regulation at a seminar hosted by Harvard Law School.

Technical analysis

Gold price confirmed the breach of 1877.00 after closing the daily candlestick above it, which activates the bullish trend scenario on the intraday basis, heading towards testing the 1901.80 level mainly, and it may extend to test the previously broken horizontal support that turns into an important resistance now at 1911.00.

From here, a bullish bias will be likely for today, bearing in mind that breaking 1877.00 and holding below it will put the price under negative pressure, whose targets start with testing 1860.90.

The expected trading range for today is between 1855.00 support and 1911.00 resistance.

The expected general trend for today: Bullish.