Gold above 1400, breaks resistance 1412, heading for 1450?
Technical Overview: Gold trading at 1430, trading above the resistance 1412 now turned to support, currently downside fresh support at 1415 or 8MA on 4hr chart and 1402 or 20MA .Upside 1430-40 acting as resistance zone, makes the downside move resumes again till 1405-10 and 1390 which is a good support. Overall we advise a sell on rise strategy for today as all time frames entered in to overbought zone need a relax and should correct the charts to move further. One can hold or sell till 1435 for downside levels.
Fundamental: On Monday, Spot Gold prices ended higher by 1.47 percent to close at $1419.2 per tonne. Prices surged as the global tensions further escalated after the U.S. imposed fresh duties on Iran after Tehran downed an American drone. In retaliation of downing their drone, U.S. President Trump imposed sanctions on Iran which further escalated the trade tension between the two countries. Rising global uncertainties boosted the appeal for the safe haven asset, Gold. Optimism over a possible trade deal between US & China seems to fade away which might push more investors to take shelter under 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.
Suggestion: SELL GOLD TILL 1430 FOR 1410/1405 ELSE BUY ABOVE 1450 for 1460/1465