Gold hovering around 200MA 1275
Technical Overview: Gold trading at 1275.50, around 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: On Wednesday, Spot Gold prices ended higher by 0.22 percent at $1275.0 per ounce. Gold bounced back after declining for over a couple of trading sessions as the rally in US stocks and appreciating Dollar weighed on the prices. Optimism over a possible trade deal between the United States and China faded worries of global economic slowdown, denting the demand for the safe-haven asset Gold. However, the U.S. Dollar Index rose by 0.6 percent which capped the gains for the yellow metal. Gold prices have declined over 5 percent since its peak in February 2019 over appreciating Dollar and change in risk appetite amongst inventors.
Appreciating Dollar and rally in global stocks might pressurize the precious metal. Investors will have a keen watch on the US GDP data which is due this week.
Suggestion: SELL GOLD FROM 1275-76 FOR 1265-63 ELSE BUY ABOVE 1281 FOR 1292/1295