Gold in sideways with 1285-1305 range
Technical Overview: Gold trading at 1296 above the resistance 1293, downside day support stands at 1285 and 1275 or 200MA. 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 1292 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 1298 meanwhile.
Fundamental: Last week, spot gold declined by 0.3 percent after optimism over USChina trade deal and better than expected China’s economic data drove the investors towards riskier assets denting the demand for the yellow metal. Investors started taking shelter under the U.S. Dollar, as a safe haven asset over rising global tension which further pressurized Gold. However, dovish stance by the U.S. Federal Reserve, low yields and falling Dollar create a bullish environment for Gold fundamentally.
Suggestion: BUY GOLD TILL 1292-94 FOR 1300-1303 ELSE SELL BELOW 1275 FOR 1268/65