Gold Drops as China Data Triggers Risk-On
Gold prices fell as rise in China’s exports figure triggered a wave of risk-on buying in the Asian equity markets.
Nears hourly 100-MA
Prices plunged to near hourly 100-MA level of $1246 levels before trimming losses to trade around $1250/barrel levels. Asian equities cheered a sharp rise in Chinese exports and have turned blind eye towards a 13.8% drop in imports. Japan’s Nikkei index spiked 2.8% following a 0.94% overnight rise in US equities.
Consequently, safe haven demand for the metal dropped. Furthermore, a 0.24% rise in the USD index is also hurting gold bulls.
Gold Technical Levels
The immediate support is seen at $1246 (hourly 100-MA) under which losses could be extended to $1236.41 (hourly chart support). Conversely, break above previous day’s high of $1263 would shift risk in favor of a rally to $1283 levels (Mar 11 high).