Gold extend its rally towards 1320 ahead of fed meet

Gold in sideways 1300-1312, stretch seems unfold and extend

Technical Overview: Gold trading at 1307.50, above the key resistance at 1302 now turned to support, downside day support stands at 1298 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 1302 levels for upside 13011-15 zones and can add more above 1312 for 1318-1320 levels. Once downside breaks 1198 can see a sharp fall again till 1285 levels.  Overall buy on dips is advised for the day with hurdles at 1308 and 1312 meanwhile.

Fundamental: On Monday, Spot gold prices rose by 0.18 percent to close at $1303.5 per ounce on hopes that the U.S. Federal Reserve will continue to have a dovish approach. The U.S. Fed will commence with its monetary policy meeting today i.e. on Tuesday, which ends with a news conference on Wednesday. The investors expect a dovish stance from the FOMC which has pressurized and Dollar and supported Gold prices. However, worries over U.S.-China trade tensions, U.S.-North Korea relations or Brexit have not really boosted demand for demand in gold, the safe haven asset.

Suggestion:  BUY GOLD ABOVE 1312 FOR 1322-24 ELSE SELL BELOW 1297.50 FOR 1288/1285

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