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Gold rebounds in Asia on increased safe-haven appeal

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The yellow metal bounces-back in Asia and regain 1100 barrier as the Chinese equities came under renewed selling pressure, triggering another risk-aversion wave across the board.

    Gold recovers from 1097 levels

    Currently, gold rises 0.60% to 1104.40, stalling its recovery at 1108.30. Gold prices edged higher this session as the demand for safe-havens was on the rise after the Asian equities opened the week in the red, particularly China following weekend’s poor CPI figures.

    The Chinese measures to stabilize the stock markets failed to restore investors’ confidence, with markets running for covering in the safety assets, gold. While comments from a top state adviser that China will face great difficulty in achieving economic growth above 6.5 percent over the 2016-2020 period, further boosted the demand for the bullion.

    Moreover, showing further signs of investors’ confidence back in the yellow metal, holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 4.2 tonnes on Thursday, data from the fund showed.

    Meanwhile, the greenback, gauged by the US dollar index, trades muted around 98.50 levels, recovering swiftly from a dip to 98.14 reached in early Asia.

    Gold Technical Levels

    The metal has an immediate resistance at 1109.50 (Nov 6 High) and 1111.10 (Jan 8 High). Meanwhile, the support stands at 1101.68 (5-DMA), below which doors could open for 1093 (Jan 8 Low).
    For more information, read our latest forex news.

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