Gold in sideways 1290-1310, stretch seems unfold and extend
Technical Overview: Gold trading at 1298.50, above the key support at 1296 now, downside day support stands at 1292 the earlier resistance now turned to support. As trend remains firm, for the day can be in sideways trade where downside 1285 and upside 1315 can be the range levels. For the coming session one can hold or buy from every low till 1290 levels for upside 13011-15 zones. Overall buy on dips is advised for the day with hurdles at 1302 and 1308 meanwhile.
Fundamental: Last week, Spot gold prices rose by 0.3 percent over downfall in the U.S. Dollar. However, Spot gold prices were pressurized after improved risk appetite amongst as concerns of no deal Brexit eased off with officials seeking for extension of the deadline for Britain’s exit from the European Union which is scheduled at the end of this month. This helped in recovery of the US Dollar against the basket of currencies which weighed on Gold. Trade tension between US & China added the trouble as US President Donald Trump emphasized that he was in no rush to secure a deal with China which raised fresh concerns over possibility of a trade deal between the biggest economies of the world. The officials of both the countries will meet again next month. The Federal Reserve Chairman Jerome Powell pointed towards a less Dovish approach as he stated that plans to closely monitor the effect of the global slowdown on United States and accordingly decide on the future of its rate hike trajectory. The markets will have a keen watch on the FOMC meet coming up next week for further updates on the rate hikes.
Suggestion: BUY GOLD ABOVE 1302 FOR 1312-1314 ELSE SELL BELOW 1285 FOR 1275/1270