Gold under range ahead of NFP, heading towards 1250?
Technical Overview: Gold trading at 1271, downside day support stands at 1266 (yesterday 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 1265 and upside 1288 can be the range levels. For the coming session one can hold or sell from every high till 1275 levels for downside 1265 zones and can add sells below 1265 for 1250 again. Overall sideways with sell on rise is advised for the day.
Fundamental: Gold plunged to 4-month lows after the Fed’s decision to leave interest rates unchanged thereby cooling off the rate-cut bets. Gold futures have headed sharply lower, putting bullion on pace for lowest settlement since December. The selloff is a clear indication that most investors were expecting a rate cut, as market participants were surprised by the central bank’s emphasis that it saw no compelling reason to consider a rate cut any time soon, citing rising employment and economic growth. Putting Fed Chairman on a collision course with President Donald Trump, who’s been after the central bank for a rate cut, would help the economic recovery and further fuel stock market gains. After Fed, BOE maintained a status quo on interest rate. For today, focus will be non-farm payrolls number and better-than-expected unemployment number could extend gains for greenback and keep yellow metals under pressure.
Suggestion: SELL GOLD TILL 1275 FOR 1262/55 ELSE BUY ABOVE 1290 FOR 1298/1300