Gold in sideways 1300-1312, stretch seems unfold and extend
Technical Overview: Gold trading at 1305, above the key resistance at 1302 now turned to support, downside day support stands at 1298 the earlier resistance now turned to support. As trend remains firm, for the day can be in sideways trade where downside 1285 and upside 1315 can be the range levels. For the coming session one can hold or buy from every low till 1302 levels for upside 13011-15 zones and can add more above 1312 for 1318-1320 levels. Once downside breaks 1198 can see a sharp fall again till 1285 levels. Overall buy on dips is advised for the day with hurdles at 1308 and 1312 meanwhile.
Fundamental: On Tuesday, Spot gold prices rose by 0.22 percent to close at $1303.5 per ounce over depreciating U.S. Dollar as the markets expect a dovish approach by FED. Consecutive second day of uptrend was supported by a weaker dollar as the U.S. Federal Reserve commenced with its monetary policy meeting on Tuesday, which ends with a news conference today i.e. on Wednesday. The investors expect that the FED will continue with its dovish stance during the Federal Open Market Committee meet which has pressurized and Dollar and supported Gold prices.
Suggestion: BUY GOLD ABOVE 1305 FOR 1318/20 ELSE SELL BELOW 1292.50 FOR 1288/1285