Gold below the daily range 1275, heading to 1250?
Technical Overview: Gold trading at 1274, downside day support stands at 1271 (April 18th, 2019 low), a break can extend the fall till 1266 (April 23rd, 2019 low) and 1250 (Dec 12, 2018 High) levels again. As trend remains weak, for the day can be in sell trade where downside 1265 and upside 1283 can be the range levels. For the coming session one can hold or sell from every high till 1278 levels for downside 1266/60 zones. 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: Data heavy day kept the yellow metal active in a broad range. Some fluctuations were seen after the release of the positive Manufacturing PMI reporting at 52.6 vis-à-vis expectation of 52.4 also the private payrolls reported at 275,000 compared to expectation of 181,000 job addition which hints that Non-farm payroll later in this week could come in positive. Gold was weighed down after the Federal Reserve chairman poured cold water on hopes of interest rate cuts. Although fluctuations were seen minutes later, when Fed Chairman Powell signalled that it’s unlikely to either raise or cut rates in coming months amid signs of renewed economic health but low inflation may be transitory and that risks appear to have “moderated somewhat,” bolstering the dollar and sapping demand for the metal as a safe haven. Focus will now shift to non-farm payrolls number that will be released on tomorrow.
Suggestion: SELL GOLD TILL 1275 FOR 1266/62 ELSE BUY ABVOE 1288 FOR 1295/1298