Gold eased off as china stated trade war not going to end smoothly makes Dollar strong

Gold fail at 1300, heading back to 1250?

Technical Overview: Gold trading at 1287, trading below the support stands at 1290 or 8MA and currently heading to test 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 1278 and upside 1293 can be the range levels. For the coming session one can hold or sell from every high till 1303 levels for downside 1280/1278 zones and can add sells below 1278 again. Overall sideways with sell on rise is advised for the day.

Fundamental:  On Thursday, spot gold prices ended lower by 0.77 percent to close at $1286.4 per ounce. Strengthening of US Dollar over robust economic data coupled with rising global stocks improved the risk sentiments amongst investors in turn denting the safe haven appeal. The U.S. housing data unexpectedly increased in April 2019. Moreover, the unemployment benefits declined last week signalling towards a stronger labour market which pushed the U.S. Dollar higher against the basket of currencies. U.S. blacklisted China’s telecoms giant Huawei, fading off any optimism over a possible trade deal. However, President Trump planned to postpone imposing tariffs on imported cars and parts by up to six months avoiding further escalation of trade tension between the biggest economies in the world. U.S. Treasury Secretary Steven Mnuchin will travel to Beijing soon to resume with the trade negotiations as the two countries try to bridge their differences and end their month’s long trade spat.

Suggestion:  SELL GOLD TILL 1288 FOR 1276/73 ELSE BUY ABOVE 1293 FOR 1299/1300

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