Gold fell as 1300 level fail again, heading to 1250
Technical Overview: Gold trading at 1276, trading below the support stands at 1290 or 8MA and currently trading below 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 1266 and upside 1288 can be the range levels. For the coming session one can hold or sell from every high till 1280 levels for downside 1270/68 zones and can add sells till 1280 again. Overall sideways with sell on rise is advised for the day.
Fundamental: Last week, spot gold prices ended lower by 1.8 percent. Escalating trade tension coupled with appreciating US Dollar weighed on the Gold prices. The U.S. housing data unexpectedly increased in April 2019. Moreover, the unemployment benefits declined last week signaling towards a stronger labor market which pushed the U.S. Dollar higher against the basket of currencies. U.S. hiked the tariff rates last week to 25 percent on the 250 billion worth of Chinese goods imported in the United States. Even China retaliated with fresh round tariffs on U.S. imports worth 60 billion which further deteriorate the global scenario. Moreover, U.S. levied severe sanctions on China’s telecoms giant Huawei on 15th may 2019 fading off any optimism over a possible trade deal. 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 1278-80 FOR 1266/68 ELSE BUY ABOVE 1293 FOR 1299/1300