Gold bounced above 200MA, will it sustain?
Technical Overview: Gold trading at 1294, trading above the support stands at 1285 or 200MA), 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 1285 and 1279 can check in evening session and upside 1298-1300 can be a limit and face a resistance. For the coming session one can hold or sell from every high till 1295-98 levels for downside 1285 or 200MA . Overall sideways with sell on rise is advised for the day.
Fundamental: On Thursday, Spot Gold prices ended higher by 0.73 percent to close at $1288.5 per ounce. The safe haven appeal for the bullion metal boosted considering the ongoing trade tension between US & China increased. Gold prices were further supported after expectation of rate cut by the U.S. Federal Reserve which weighed on the Dollar. After witnessing steady growth on the first quarter, the US economy slowdown over escalating trade tension with China. Even the manufacturing, retail sales and exports dipped in April 2019. Markets expect that FED will consider the weak domestic demand and inflation in their next meet and might go ahead with the rate cut.
Suggestion: SELL GOLD TILL 1295 FOR 1285-83 ELSE BUY ABOVE 1303 FOR 1310/1313