Now gold is trading below $1300 once again & as we can see on charts, gold kissed the broken trade line which was unable to hold prices up 3rd time in mid april . The upside reversal we witness in gold in last 2 times is making a pattern of lower high, lower lows which indicate for further weakness ahead. At the same a black cloud cover candle just below the broken trade line hinting for another downside move. Although the last 2 downside move was little away from the full target around $1262, indicators still trading in negative mode.
On fundamental side the tong war between US & RUSSIA has come to a pause with monday US sanction which was seems to be very less effective compare to market expectation. Meanwhile FOMC meeting in coming 2 days will divert the traders concentration towards long term goal rather an small one.
Based on above studies, we will prefer to sell gold for some possible target around $1262 & then may be more. Only a day close above $1312 will reject the forecast.
MCX june : 28910 - 29070
MCX june : 28580 - 28300