Gold above recent low and below critical resistance
Technical Overview: Gold trading at 1283, trading below the support stands at 1285 or 200MA and currently trading below 1284(8MA), 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 1285 levels for downside 1278/75 zones. Overall sideways with sell on rise is advised for the day.
Fundamental: On Monday, Spot Gold prices ended marginally higher by 0.1 percent to close at $1284.8 per ounce whereas Gold on the MCX ended higher by 0.26 percent to close at Rs.31613.0 per 10gms. Constant escalating tension between U.S. and China might take a severe hit on the U.S. economy which has raised worries of slowdown, weakening the U.S. Dollar Index. Manufacturing sector PMI of U.S. dipped to 50.6, lowest levels in a decade. Weak U.S. data raised the markets expectation of a rate cut by FED soon further weighed on the Dollar and in turn boosted the demand for the safe haven asset.
Suggestion: SELL GOLD TILL 1284-85 FOR 1278/75 ELSE BUY ABOVE 1293 FOR 1299/1300