FXStreet (Mumbai) – Gold prices recovered from the lows to trade largely unchanged on the day after the data in China heightened concerns regarding the slowdown in the global economy.
Safe haven demand back?
The prices had dipped to a low of USD 1121.10/Oz levels before recovering to trade around USD 1125.50/Oz levels. The China Caixin Manufacturing index for September fell to 47, from the August level of 47.3, putting it at a 78-month low. Consequently, the markets turned risk averse once again, forcing investors towards the traditional safe haven assets.
However, gains are still being capped on account of the resilience in the US dollar.
Gold Technical Levels
The immediate resistance is located at 1132.90 (Nov 2014 low), above which prices could rise to 1141.20 (Sep 18 high). The support is located at 1118.40 (Aug 27 low) and 1098.20 (Sep 11 low).
(Market News Provided by FXstreet)