FXStreet (Mumbai) – Risk-off trades re-emerged in Asia following the release of weak Chinese trade data, which boosted gold’s safe-haven appeal and aided the recovery in the bullion from near 1066 levels.
Gold: Revisits daily highs near 1072.50
Currently, gold trades marginally higher at 1071.98, recovering from 1066.90 levels printed just before China data release. Gold attempts a tepid-bounce amid falling global equities and lacklustre Chinese exports data which weighed on investors’ moods and lifted the safe-haven bids for the yellow metal. While a minor improvement in the country’s import demand also favoured gold prices. China is the world’s top gold consumer.
Moreover, broad based US dollar weakness on lower demand for riskier currencies also supports the upside in gold. The USD index now loses -0.11% to trade at 98.62. Meanwhile, focus now remains on Chinese CPI ahead of the US retail sales and consumer sentiment data due later this week. Although pressure continues to build on the bullion as Fed meeting next week nears.
Gold Technical Levels
The metal has an immediate resistance at 1074.60 (Dec 1 High) and 1080 (round number). Meanwhile, the support stands at 1065.80 (Daily Low), below which doors could open for 1058.70 (Dec 4 Low).
(Market News Provided by FXstreet)