Gold below daily pivot, heading to 1266 again?
Technical Overview: Gold trading at 1277, trading below the support stands at 1285 or 200MA and currently trading below 1281(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 1271 (May 21st low). Overall sideways with sell on rise is advised for the day.
Fundamental: On Wednesday, Spot Gold prices ended marginally higher by 0.1 percent to close at $1279.2 per ounce whereas. The safe haven appeal for the bullion metal boosted considering the on-going trade tension between US & China increased. However, investors preferred Dollar as a safe haven over Gold which led to a rally in the Dollar Index in turn capping the gains for Gold. Rising concerns of a global economic slowdown with constant escalation of US China trade tension, no proper conclusion of the Brexit and issues in the European economy pushed the Dollar higher. Moreover, even the U.S. Treasury yields is continuously declining over growing global growth worries which pressurized the Dollar index.
Suggestion: SELL GOLD TILL 1280 FOR 1271-70 ELSE BUY ABOVE 1293 FOR 1299/1300