Gold stucked in range bound ahead of FOMC
Technical Overview: Gold trading at 1283, downside day support stands at 1277.50 or 200MA, 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 1275 and upside 1288 can be the range levels. For the coming session one can hold or sell from every high till 1285-88 levels for downside 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 sell on rise is advised for the day.
Fundamental: Spot gold prices declined as strong data from China and the United States buoyed stock markets, denting the appeal of bullion. Global shares rose, supported by data showing profits at Chinese industrial firms grew for the first time in four months and a strong reading of U.S. first quarter growth data last week. The recent uplift in equities has led investors cut their exposure to gold, with holdings of SPDR Gold Trust, the world’s largest gold backed exchange-traded fund, falling to its lowest since Oct. 19 at 746.69 tonnes on Friday.
Suggestion: SELL GOLD TILL 1285 FOR 1278/1275 ELSE BUY ABOVE 1290 FOR 1298/1300