Gold slide down below 200MA, will it test 1300?
Technical Overview: Gold trading at 1328.50, 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 some time, for the day one can be in sideways trade where upside 1333-35 can be a limit and face a resistance. For the coming session one can hold or sell from every high till 1330 levels for downside 1322 and 1312 or 20MA . Overall sideways with sell on rise is advised for the day.
Fundamental: On Monday, Spot gold prices ended lower by 0.94 percent to close at $1327.7 per ounce. Prices declined as risk appetite amongst inventors boosted after U.S. President Trump decided not to impose tariffs on Mexico. Even the Dollar strengthened and the markets shifted towards riskier assets which weighed on the yellow metal prices. U.S. & Mexico struck a deal last week, side stepping a possible trade war and averting chances of an economic slowdown which dented the appeal for the safe haven asset.
Suggestion: SELL GOLD TILL 1328-30 FOR 1322/1318 ELSE BUY ABOVE 1345 FOR 1352/1355