Gold rejected 1360 again, fall started heading to the support 1320
Technical Overview: Gold trading at 1339, trading above the resistance now turned to support, currently downside fresh support at 1325 or 200MA on 1hr chart and 1336 todays low, Upside 1346-48 acting as resistance makes the downside move resumes again till 1325 and 1320 which is a good support. Overall we advise a sell on rise strategy for today. One can hold or sell till 1340 for downside levels.
Fundamental: Gold prices rose by 0.4 percent last week over expectation of rate cut by the U.S. Federal Reserve. Slowdown in the global growth amid weakening of the US economy might pressurize the FED to trim the rates which weighed on the US Dollar & in turn support Gold prices. Markets will have a keen watch on the next meeting of the US FED policymakers which is to be held on June 18-19, 2019. U.S. & Mexico struck a deal last week, side stepping a possible trade war and averting chances of an economic slowdown capped the gains for Gold. However, escalating trade tension between U.S. & China coupled with rising global uncertainties continues raise worries over the global economic growth and push investors to take shelter under the bullion metal. China stated that it won’t come under any pressure and enter in to a contract forced by U.S. which further worsened the trade situation between the super power nations.
Suggestion: SELL GOLD TILL 1340 FOR 1325/1320 ELSE BUY ABOVE 1356 FOR 1366/1368