Futures contracts for gold prices fluctuated in a narrow range slanting to an upward trend during the Asian session, to witness the highest since the ninth of November, overlooking the rebound of the US dollar index for the third session from its lowest since April 19, 2018 according to the opposite relationship amid scarcity of economic data today Monday by the US economy, the largest economy in the world, and amid market pricing for the severity of the second wave of the Coronavirus during the winter, and US lawmakers reached an agreement on a relief package to counter the repercussions of the Corona pandemic.
At exactly 05:15 a.m. GMT, gold futures contracts for next February delivery rose 0.48% to trade at $ 1,901.90 an ounce, compared to the opening at $ 1,892.90 an ounce, knowing that the contracts started the session on a rising price gap after the week's trading ended. The past was at $ 1,888.90 per ounce, while the US dollar index rose 0.34% to 90.46 compared to an opening at 90.15.
We have continued to keep the People's Bank of China (the Central Bank of China) on the basic lending rate for one year and five years unchanged at 3.85% and 4.65%, respectively, which came in line with expectations. American and Republican Majority Leader Mitch McConnell said that congressional leaders have reached an agreement on a $ 900 billion Corona pandemic relief bill.
This comes in conjunction with concern about the severity of the second wave of the Coronavirus during the winter and following the British government's warning that the new Coronavirus strain is "out of control". The British government also reported yesterday that there are still "major differences" in trade talks between the United Kingdom. And the European Union, less than two weeks before the end of this year and the deadline for Britain's exit from the European Union.
In the same context, some European countries have taken steps to limit travel to the United Kingdom in conjunction with the British government's request for more than 16 million Britons to stay in their homes with the entry into force of the complete closure in London and the southeast of England, and in Australia travel restrictions have been imposed to Sydney The densely populated country is no longer isolated from the rest of the country, amid the increasing cases of coronavirus in the country during recent times.
Yesterday we also followed up the report that touched on the fact that the number of new monthly coronavirus cases in the Japanese capital Tokyo exceeded 10 thousand cases for the first time, according to Kyodo News, and the new cases of coronavirus recorded in South Korea reached a new record according to the local news agency, which reflects that The situation of the Corona virus in parts of northern Asia is dangerous, which, in turn, affects investor sentiment.
Technical analysis
Gold price opens today's trading with a strong positive, to start testing the 1900.00 barrier, reinforcing expectations for the continuation of the main bullish trend, noting that we are awaiting further rise to visit 1912.50 then 1928.60 as next positive targets.
Thus, the bullish trend scenario will remain valid and effective for the upcoming period, supported by the positivity of the stochastic oscillator and the SMA 50, bearing in mind that the continuation of the bullish wave depends on stability above 1875.00.
The expected trading range for today is between 1880.00 support and 1928.00 resistance
The expected general trend for today: Bullish