Gold in sideways post NFP with weak bias
Technical Overview: Gold trading at 1282, downside day support stands at 1280 or 200MA and 1272 (May 1st, 2019 low), a break can extend the fall till 1266 (May 2nsd low) , if breaks and hold 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 levels for downside 1275 and 1272 zones and can add sells below 1265 for 1250 again. Overall sideways with sell on rise is advised for the day.
Fundamental: Gold gained marginally in the yesterday’s session following a weaker dollar and increased uncertainty between US and China. Chinese representatives will be going to US for discussing the deal, although President Trump has announced that it will impose higher tariffs of 25% from 10% effective from Friday on goods worth $200billion. Any further update will be an important trigger for the yellow metal. Investors again sought the precious metal as insurance against a potential collapse in the U.S.- China trade deal and the impact of that on global growth could slow down global growth. Holdings of SPDR Gold, the world’s largest gold-backed exchange traded fund, saw a slight uptick on Tuesday after a dismal run. Holdings are still at their lowest level since October 2018. Few important data are expected today on the economic calendar w.r.t. US like the Core PPI, weekly initial jobless claims and the trade balance figure.
Suggestion: SELL GOLD TILL 1283-85 FOR 1278/75 ELSE BUY ABOVE 1293 FOR 1298/1300