Gold tested important level 1308, will it make or break?
Technical Overview: Gold trading at 1307, above the key resistance at 1303 now turned to support, downside day support stands at 1300 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 1300 levels or a break above 1310 for 1318 and 1322 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 1308 and 1310 meanwhile.
Fundamental: On Wednesday, spot gold prices rose 0.30 percent to close at $1307.8 per ounce as the risk appetite amongst investor’s eased off over global economic and political concerns which in turn boosted the demand for Gold. Worries over Brexit and trade spat between US and China drove further increased the demand for Gold, as a safe haven. Gold was further supported after dovish stance by the US Federal Reserve and the European central bank. A patient stance by FED might pressurize the US Dollar and in turn push Gold higher. The IMF cut its global growth forecasts for 2019 and warned growth could slow further if trade tensions persist and if Britain makes a disorderly exit from the European Union.
Suggestion: BU GOLD ABOVE 1310 FOR 1318-20 ELSE SELL BELOW 1299 FOR 1292-90