Gold rose above 1280 despite strong NFP figure
Technical Overview: Gold trading at 1282, downside day support stands at 1275 or 200MA and 1266 (April 5th, 2019 low), a break can extend the fall till 1250 (Dec 12, 2018 High) levels again. As trend remains weak, for the day can be in sideways trade where downside 1275 and upside 1288 can be the range levels. For the coming session one can hold or sell from every high till 1285 levels for downside 1275 and 1272 zones and can add sells below 1265 for 1250 again. Overall sideways with sell on rise is advised for the day.
Fundamental: Last week, Spot gold prices declined by 1.2 percent. Strengthening of US Dollar over stronger US economic data coupled with robust Job data dented the appeal for the safe haven asset, Gold. Moreover, The U.S. Federal Reserve held interest rates steady but they pointed towards some adjustments any time soon considering the continuous job and economic growth. U.S. generated about 275,000 new jobs last month across every sector which strengthened the Dollar Index. The recent uplift in equities has led investors cut their exposure to gold, with holdings of SPDR Gold Trust, the world’s largest gold backed exchange-traded fund, falling to its lowest since Oct. 19 at 746.69 tonnes in the earlier week.
Suggestion: SELL GOLD TILL 1283-85 FOR 1278/75 ELSE BUY ABOVE 1293 FOR 1298/1300