Bullion is trading in the green zone, as investors prefer safe-haven assets instead of investing their money into riskier stocks due to renewing global growth fears. Demand for gold is usually rising in times of political and economic uncertainty as the metal is seen as a safe haven.
Traders are worried over the slowdown in China’s economy, the world’s second-biggest and also one of the world’s top gold consumers. The latest data over this week showed a disappointing Chinese manufacturing figure for December, and a 17-month low for the country’s services sector.
The greenback’s direction could be changed over the week as traders are focused on the NFP employment report for December.
Major support and resistance levels are as follows:
Support 1: $1092
Support 2: $1087
Support 3: $1082
Current Rate – $1099
Resistance 1- $1102
Resistance 2- $1107
Resistance 3- $1112
We prefer to take range bound market movement depending up on the support and resistance levels.
The material has been provided by InstaForex Company – www.instaforex.com