Gold above the range, will it break 1300?
Technical Overview: Gold trading at 1299, downside day support stands at 1290 or 8MA and 1278 (20MA), a break can extend the fall till 1266 (May 2nd low) which would continue the fall till 1250(Dec 12, 2018 High) levels again. As trend remains sideways to weak, for the day can be in sideways trade where downside 1293 and upside 1303 can be the range levels. For the coming session one can hold or sell from every high till 1303 levels for downside 1293 and 1285 zones and can add sells below 1285 for 1278 again. Overall sideways with sell on rise is advised for the day.
Fundamental: Gold after a lot of struggle and wait showed its safe haven traits as it climbed above $1300 for the first time in approximately a month. U.S. and China failed to reach a trade deal last week, and the U.S. increased tariffs on Chinese imports on Friday. In a retaliatory move from China who announced to increase tariffs on $60 billion of US goods with effect from June 1st, this move further fueled fears that an escalating trade war could drag down the global economy. Gold miners and sector-related ETFs were leading the charge yesterday as the sudden risk- off turn helped strengthen gold prices and the precious metal producers’ outlook. It’s a wait and watch scenario as of now and it will be important to see what and how US will answer back as President Trump tweeted yesterday that” China should not retaliate- will only get worse’
Suggestion: SELL GOLD TILL 1301-1303 FOR 1293/88 ELSE BUY ABOVE 1308 FOR 1313/1315