Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness the highest since February 3, when it experienced the highest since January 8, which is the highest in seven years amid the decline in the dollar index, indicating its rebound from the top It has since October 8, according to the inverse relationship between them, on the cusp of developments and economic data expected today by the US economy, the largest economy in the world, and in the shadow of concern over the spread of the Corona virus.
At exactly 04:02 AM GMT, gold price futures for April delivery rose 0.21% to trade at $ 1,589.70 per ounce compared to the opening at $ 1,585.10 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded yesterday’s trading At $ 1,586.40 an ounce, with the US dollar index down 0.02% to 99.17 compared to the opening at 99.19.
Investors are currently awaiting the release of the industrial sector data by the US economy, with the release of the New York Industrial Index reading, which may reflect an expansion to what amounted to 5.1 compared to 4.8 in January, and this comes before we witness the disclosure of housing market data with the release of the index reading Housing by the National Association of Home Builders, which may reflect stability at $ 75 in January.
To the talk of a member of the Federal Open Market Committee and the President of the Federal Reserve Bank of Minneapolis about the proposal to amend education in Minnesota at the Indian Affairs Council in Minnesota in St. Paul, and this comes hours before the disclosure tomorrow, Wednesday, of the minutes of the Federal Committee meeting held on January 28-29 / January, during which monetary policy makers decided to keep interest rates at between 1.50% and 1.75% for the third meeting at that time.
On the other hand, we followed last Sunday, and Chinese Finance Minister Liu Kun expressed his expectation that his country’s fiscal revenues will decrease and expenditures will rise in the future, which strengthened speculation that Beijing will adopt more financial incentives as part of efforts to contain the repercussions of the spread of the Corona virus, which has infected more. Of seventy thousand people and killed more than one thousand seven hundred others globally.
In the same context, China also revealed during the last weekend of plans to reduce corporate taxes and fees in addition to allowing banks to operate more non-performing loans, before we witnessed yesterday, Monday, the People’s Bank of China (the Chinese Central Bank) to cut interest medium-term loans by ten A basis point to 3.15% from 3.25%, and this came amid expectations the Chinese central bank will intensify liquidity easing measures and financing conditions.
The price of gold ended last week’s trading above the level of 1575.90, confirming the breach of this level and opening the way for heading towards a visit to the previously recorded summit at 1611.20 as the next positive station.
Thus, the bullish trend scenario will remain effective for the upcoming period supported by the EMA50, noting that breaking 1575.90 and holding below it may pressure the price to visit 1554.10 areas again before any new attempt to rise.
The expected trading range for today is between 1570.00 support and 1600.00 resistance.
Expected trend for today: bullish.