Gold moves sideways on US China trade optimism, focus on FOMC

Gold rejected 1360 again, fall started heading to the support 1320

Technical Overview: Gold trading at 1345, trading above the resistance now turned to support, currently downside fresh support at 1325 or 200MA on 1hr chart and 1336 .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 1348 for downside levels.

Fundamental:  On Monday, spot gold prices ended higher by 0.53 percent to close at $1346.1 per ounce. Prices rose over expectations that the US Federal Reserve might trim the interest rates considering the economic scenario. Even the European central bank might consider monetary easing which further supported the yellow metal. Markets will have a keen watch on the Fed’s monetary policy decision which will be announced later in the day. Hopes over a possible rate cut might support Gold prices. Optimism over a possible trade deal between US & China might dent the appeal for the bullion metal. President Donald Trump stated that the U.S. & China will resume with the trade talks before the two presidents meet at the G20 meet which will be held later this month in Japan. President trump has confirmed that he will be meeting China’s president Xi Jinping to try and resolve the prolonged trade spat.

Suggestion:  SELL GOLD TILL 1348 FOR 1325/1320 ELSE BUY ABOVE 1356 FOR 1366/1368

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