Gold Under Pressure in Asia on Improved Risk Sentiment
Gold extended
its overnight retreat in the Asian session, and now consolidates near
the lower band of today’s daily range as risk-on trades pick up pace.
Gold moves-off fresh four-week tops
Currently,
gold trades 0.11% lower at 1252.68, retreating slightly from fresh
session lows reached at 1251.88 after the Chinese trade data release.
The yellow metal remains under pressure this session as the resurgence
of risk-on trades on the back of a robust rally in the black gold and
Asian equities, restored investors’ confidence and reduced the
safe-haven demand for gold. Japan’s Nikkei rockets +2.40%, Australia’s
ASX index rallies +1.29%, while the Shanghai Composite rises +2.08%.
Moreover,
a minor recovery seen in the US dollar against the yen and euro, also
added to the downward pressure on the gold prices. Meanwhile, the US
dollar index advances +0.13% to 94.14 levels.
Further, the upbeat
Chinese trade data also failed to lift the sentiment around the
precious metal. China is the world's biggest gold consumer. Focus now
turns towards the crucial retail sales and PPI data from the US docket,
lined up for release later today ahead of Thursday inflation figures,
which will shed more light on the US interest rates outlook for this
year.
Gold Technical Levels
The metal
has an immediate resistance at 1266.94 (Mar 18 High) and 1270.93 (Mar 17
High). Meanwhile, the support stands at 1250 (round number) below which
doors could open for 1248.22 (5-DMA).
