Gold off the highs and holding resistance 1415 strong
Technical Overview: Gold trading at 1406, trading below the support 1412 now turned to resistance, currently downside fresh support at 1404.50 or 200MA on 30Min chart, if breaks can fall sharply till 1386 or 200MA (1hr).Upside 1422-23 acting as resistance zone, makes the downside move resumes again till 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 1408-10 for downside levels.
Fundamental: On Wednesday, spot Gold prices ended lower by 1.02 percent to close at $1408.4 per tonne. Appreciation in the U.S. Dollar Index after the U.S. Federal Reserve seemed to move away from its dovish stance weighed on the yellow metal prices. However, the FOMC is still battling if the current scenario requires an interest rate cut. Markets look forwards for the trade negotiations which are to commence after the two presidents meet at the G20 meet which is to be held on 28th -29th June, 2019 in Japan. President Trump has threatened that if the two countries fail to reach a trade deal then he might impose tariffs on all remaining Chinese imports which will further deteriorate the global scenario.
Suggestion: SELL GOLD TILL 1410 FOR 1385/1380 ELSE BUY ABOVE 1425 FOR 1435/1438