Gold above 1300, facing sideways with high volatility
Technical Overview: Gold trading at 1302, above the key resistance at 1300 now turned to support, downside day support stands at 1301 or 200MA, a break can extend the fall till 1292-90 levels again. As trend remains firm, for the day can be in sideways trade where downside 1298 and upside 1308 can be the range levels. For the coming session one can hold or buy from every low till 1301 levels for upside 1308-1310 zones and can add more above 1313 for 1318-1324 levels. Once downside breaks 1298 can see a sharp fall again till 1290-1288 levels. Overall buy on dips is advised for the day with hurdles at 1304 and 1308 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 1301-02 FOR 1308-10 ELSE SELL BELOW 1297 FOR 1292-90