Gold at four month low on strong dollar

Gold struggling and below 200MA 1275

Technical Overview: Gold trading at 1270, below the key resistance at 1275 or 200MA, downside day support stands at 1267 (April 2rd, 2018 low), a break can extend the fall till 1250 (Dec 12, 2018 High) levels again. As trend remains weak, for the day can be in sideways trade where downside 1267 and upside 1275 can be the range levels. For the coming session one can hold or buy from every low till 1267 levels for upside 1274-75 zones and can add sells from 1275 for 1268-67 again. Once downside breaks 1267 can see a sharp fall again till 1258/55 levels. Overall sideways with buy on dips and sell on rise is advised for the day.

Fundamental: Gold fell to the lowest level in four months primarily on back of strength in the dollar against its major crosses. The greenback rose after strong U.S. housing data further eased concerns of a slowdown in the world’s biggest economy. Sales of new U.S. single family homes rose to a near one and half year high in March, boosted by lower mortgage rates and house prices. The dollar also rose after White House reported that US and Chinese representatives will begin trade talks on April in Beijing. The United States is seeking changes from China that range from reducing industrial subsidies to halting forced technology transfers by U.S. companies seeking to enter the Chinese market. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.27% to 749.63 tonnes on Tuesday from 751.68 tonnes on Monday.

Suggestion:  BUY GOLD FROM 1269-68 FOR 1274-75 AND SELL AGAIN FROM 1275 FOR 1268/67

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