Gold broken the key support 1275
Technical Overview: Gold trading at 1272, below the key resistance at 1275, downside day support stands at 1268, a break can extend the fall till 1258-60 levels. As trend remains sideways to weak, for the day can be in sideways trade where downside 1268 and upside 1280 can be the range levels. For the coming session one can hold or buy from every low till 1270 levels for upside 1275 and 1280 zones and can add more above 1283 for 1292-95 levels. Once downside breaks 1268 can see a sharp fall again till 1255 levels. Overall buy on dips with a caution is advised for the day with hurdles at 1275 and 1283 meanwhile.
Fundamental: On Wednesday, spot gold prices declined marginally by 0.19 percent to close at $1273.7 per ounce. Stronger Chinese economic data eased the global slowdown concerns which increased the demand for riskier assets in turn pressurizing Gold. In the first quarter China’s economy grew at a steady rate of 6.4 percent, well above the expectations of a 6.3 percent expansion. Gold prices were also dented further over strong US economic data which eased slowdown concerns in the world’s largest economy. Strong US economic data is likely to strength US dollar in coming time
Suggestion: BUY GOLD FROM 1270-71 FOR 1278/80 ELSE SELL BELOW 1267 FOR 1260/58