Gold fell below key support as dollar strengthens continues

Gold below key support, heading to recent low 1266

Technical Overview: Gold trading at 1273, 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 1276-78 levels for downside 1270/68 zones. Overall sideways with sell on rise is advised for the day.

Fundamental:  On Tuesday, spot gold prices ended lower by 0.22 percent to close at $1274.7 per ounce. Recovery in the U.S. Dollar and strengthening of global stocks dented the demand for the yellow metal. Global stocks rose as the United States temporarily eased the curbs on China’s tech giant, Huawei, easing worries about further escalation of the U.S.-China trade tension. The markets will have an eye for the FED’s minutes which are to be published today for further hints whether of the Federal Reserve will trim interest rates considering the escalating trade tension. However, Chair Jerome Powell stated that it was premature to ascertain the impact of trade and tariffs dispute between U.S. and China on the monetary policy. Meanwhile, as per data from the International Monetary Fund (IMF) published yesterday, Russia increased its gold holdings by 15.15 tonnes to 2,183.52 tonnes in April 2019.

Suggestion:  SELL GOLD TILL 1276-78 FOR 1266/68 ELSE BUY ABOVE 1288 FOR 1299/1300

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