Gold remains underpinned in Asia, as China trade numbers disappoint

Gold remains underpinned in Asia, as China trade numbers disappoint

9 February 2015, 07:38
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On Monday, gold prices on Comex remained slightly higher in the Asian session, as weaker than expected Chinese trade balance data pressured Asian equities, making investors look for a shelter.

As FXStreet reports, gold trades higher by 0.22% at 1237.30 levels, having posted fresh daily highs at 1239.30 levels earlier in the session.

Prices for the yellow metal rose after China's trade performance slumped in January, with exports falling 3.3 percent from year-ago levels, while imports tumbled 19.9 percent, far worse than expectations. The weak Chinese data spurred concerns over China’s growth prospects, boosting gold’s demand as a safe haven asset.

On the contrary, CFTC data on Friday showed that hedge funds and money managers cut their bullish bets in gold and silver futures and options for the first time in six weeks during the week to Feb. 3.

The metal has an immediate resistance at 1240 and 1246 levels. Meanwhile, support stands at 1234 levels below which doors could open for 1228 levels.
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