Gold below pivot 1290, but holding the strong support
Technical Overview: Gold trading at 1286, below the key support at 1290 now turned to resistance, downside day support stands at 1283 and 1275 or 200MA. As trend remains firm, for the day can be in sideways trade where downside 1280 and upside 1293 can be the range levels. For the coming session one can hold or buy from every low till 1285 levels for upside 1298-1300 zones and can add more above 1305 for 1318-1324 levels. Once downside breaks 1283 can see a sharp fall again till 1275 levels. Overall buy on dips is advised for the day with hurdles at 1290 and 1298 meanwhile.
Fundamental: On Monday, spot gold declined by 0.35 percent to close at $1287.9 per ounce. Gold prices continue to decline as optimism over US-China trade deal and better than expected China’s economic data drove the investors towards riskier assets denting the demand for the yellow metal. Positive manufacturing data from China for the first time in four months improved the market sentiments. China’s factory activity rose to 50.5 in March 2019 compared to 49.4 in February 2019.
Suggestion: BUY GOLD FROM 1285-86 FOR 1293-95 ELSE SELL BELOW 1275 FOR 1268/65