Gold jumped 1% optimism around a stimulus bill and weak dollar

Gold jumped 1% hitting almost a two week high, on optimism around a U.S. stimulus bill and a weakened dollar, despite gains in the stock markets after reports that U.S. President Donald Trump could soon e discharged from the hospital. Optimism over fiscal stimulus came into play after upbeat weekend comments from U.S. House Speaker Nancy Pelosi, who said progress was being made on relief legislation. On the data front, even though service PMI data from US was in line with the forecast but was recorded better in other major economies hence giving some jerk to the metal prices. Market participants will keep an eye on the speech by ECB and Fed Governor later in the day. Updates regarding the health of POTUS and US Presidential election will also be important to watch for. Also investors are awaiting the release of minutes from U.S. Federal Reserve's September meeting tomorrow which could keep the volatility high.

Technically, Gold in tight range at 1885-1925, upside seems limited with immediate hurdle at 1918 and day h4 ma200 stands at 1930.Downside h4 ma50 stands at 1885 giving solid support. Any break either side could give fresh move for downside 1848 which is the trend deciding level, and upside a break 1930 can test 1955/1980 levels. Overall range bound to weak bias can be seen for the day in morning session and can pick up from the low for evening session. Buy on dips is advised overall.

Suggestion: BUY GOLD FROM 1900-1895 SL BELOW 1885 TGT 1917/20 ELSE SELL BELOW 1885 TGT 1875/1868 SL ABV 1905