Gold Capped Below 5-DMA in Asia, Set for Weekly Drop
Gold stalled
its selling spiral in the Asian trades this Friday, although remains
poised to book first weekly loss in three weeks as broad based US dollar
advance continues to weigh on the metal.
Gold recovers from $ 1225 levels
Currently,
gold trades 0.08% higher at fresh session highs of 1230.52, recovering
from session lows struck at 1225.29. The bullion recovers entire losses
and flips to gains in mid-Asia as a slew of upbeat Chinese data
refuelled expectations of improving demand for gold from the world’s top
yellow metal consumer.
Moreover, mixed sentiment on the Asian
equities ahead of the oil producers’ meeting in Doha this Sunday, also
underpinned the safe-haven bids for the bullion. While weaker US retail
sales, PPI and CPI data continue to weigh on the Fed rate hike
prospects, and help keep the downside capped.
Moving on, markets
now await a string of US economic releases due later in the day for
further momentum on the dollar priced-in precious metal.
Gold Technical Levels
The
metal has an immediate resistance at 1233.64 (5-DMA) and 1240 (round
number). Meanwhile, the support stands at 1225/23 (previous lows) below
which doors could open for 1220 (psychological levels).
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