Gold extended to range to 1300-1324
Technical Overview: Gold trading at 1309, 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 1315-18 zones and can add more above 1312 for 1318-1324 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 1312 and 1318 meanwhile.
Fundamental: On Thursday, Spot gold prices declined by 0.23 percent to close at $1309.2 per ounce over appreciating U.S. Dollar over better than expected U.S economic data. Americans filing applications for unemployment benefits has reduced significantly last week coupled with factory activity in the mid-Atlantic region rebounding sharply this month after heavy falls earlier which supported The U.S. Dollar. However, uptrend in the U.S. Dollar was restricted as the U.S. Federal Reserve gave up all plans to hike interest rates in 2019, signalling towards an end of their monetary tightening policy. This restricted the downfall in Gold prices.
Suggestion: BUY GOLD ABOVE 1312 FOR 1318/20 ELSE SELL BELOW 1298 FOR 1290/1288