Gold off the highs and fell below the main support 1412
Technical Overview: Gold trading at 1409, trading below the support 1412 now turned to resistance, currently downside fresh support at 1409 or 20MA on 4hr chart and 1416 or 200MA .Upside 1422-23 acting as resistance zone, makes the downside move resumes again till 1385 or 50MA and 1375 (trend changing level closing below). 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 1412 for downside levels.
Fundamental: On Tuesday, Spot Gold prices ended higher by 0.26 percent to close at $1419.2 per tonne. The uptrend in the bullion metal was limited after the U.S. Federal Reserve seemed to move away from its dovish stance which pushed the U.S. Dollar higher and in turn capped the gains for the bullion metals. However, the FOMC is still battling if the current scenario requires a interest rate cut. Dollar bounced back after declining over dovish comments by the U.S. FED which weighed on the yellow metal. Fading optimism over a possible trade deal between US & China might push more investors to take shelter under the bullion metal and provide certain support. President Donald Trump stated that the U.S. & China will resume with the trade talks after the two presidents meet at the G20 meet which will be held later this month in Japan.
Suggestion: SELL GOLD TILL 1410 FOR 1385/1380 ELSE BUY ABOVE 1425 FOR 1435/1438