Gold in sideways as trade war in sight
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 prices inched higher, supported by a weaker dollar against its major crosses. Increased attention is received by yellow metal, after continuous updates on the US-China trade war scenario which is also sending global stock market lower. The U.S.-China trade war is escalating, with both sides digging in their heels and threatening new sanctions on each other. Chinese trade officials are in Washington to continue discussions. On further updates, US president is firm on increasing tariffs rate by midnight today although he has mentioned about some consideration and possibility of the trade if discussion ends well. The U.S.-China trade conflict is presently overshadowing all other potential geo political issues and factors, so till the time we see some output on the same, a wait, watch and act will be an ideal approach to take. On the Economic Calendar, we have an important US Core CPI as well as the UK GDP numbers to be released.
Suggestion: SELL GOLD TILL 1283-85 FOR 1278/75 ELSE BUY ABOVE 1293 FOR 1298/1300