Gold slips from 1300 as Stocks in the U.S. soared as traders embraced a more hopeful trade outcome

Gold facing shy at 1300, fail to sustain again

Technical Overview: Gold trading at 1294, 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 1288 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 retraces after hitting the highest level in a month as US and China decided to further their discussions on trade, soothing investor concerns around a full-blown trade war. U.S. President Donald Trump called the trade war with China “a little squabble” and insisted talks between the world’s two largest economies had not collapsed, as investors remained cautious for another tit-for-tat tariffs war. However, U.S. President Trump sounded optimistic on the possibility of making a deal with China in a Twitter thread and allowed risk-appetite to return to markets. Rise in investor interest in bullion was also evident after holdings of SPDR Gold Trust, rose 0.44% on Monday, its biggest one-day rise in nearly two months. Today, from the US, market participants will be keeping an eye on retail sales number to gauge a view for the greenback; expectation is that number could disappoint and could keep the dollar under pressure.

Suggestion:  SELL GOLD TILL 1295 FOR 1287/85 ELSE BUY ABOVE 1303 FOR 1308/1313

Leave A Reply