Gold range bound to sideways
Technical Overview: Gold trading at 1293, above the key resistance at 1290 now turned to support, downside day support stands at 1285 the earlier resistance now turned to support. As trend remains firm, for the day can be in sideways trade where downside 1285 and upside 1305 can be the range levels. For the coming session one can hold or buy from every low till 1288 levels for upside 1298-1300 zones and can add more above 1305 for 1318-1324 levels. Once downside breaks 1285 can see a sharp fall again till 1270 levels. Overall buy on dips is advised for the day with hurdles at 1298 and 1303 meanwhile.
Fundamental: Last week, spot gold declined by 1.4 percent. After declining significantly over chances of a possible recession the US dollar recovered which pressurized the yellow metal. Continuously mounting global tension boosted the demand for US Dollar as a safe haven asset. Dollar further strengthened against the basket of currencies as others struggled after dovish indications from central banks in turn pushing gold prices lower. Dovish approach by the U.S. Federal Reserve and global growth concerns has helped Spot Gold appreciate over 13 percent after hitting more than 1-1/2 year lows in August 2018.
Suggestion: BUY GOLD ABOVE 1293 FOR 1300/1303 ELSE SELL BELOW 1285 FOR 1278/75