FXStreet (Mumbai) - Gold prices stage a solid recovery from weekly lows and rallies nearly $ 10 on the back of renewed demand for safety assets, triggered by weakness in the Asian equities. Gold off highs, but stays above $ 1080 Currently, gold trades 0.74% higher at 1081.50, retreating from session highs printed at 1082. Gold prices took out 1080 – key upside barrier on its recovery from ahead of 1070 levels, as risk-sentiment soured in Asia after the oil prices fell back in the red. Hence, investors pulled out funds from the risky assets such as equities and favoured the bullion, the traditional safe-haven. Moreover, the comments from Fed’s Bullard in the last US session also helped lift the sentiment around the yellow metal. St. Louis Fed President James Bullard said a continued decline in inflation expectations may change his outlook for further Fed rate hikes. Gold tends to suffer in a higher interest rates environment as it is a non-interest bearing investment asset. In evidence to the increasing investors’ confidence in gold, the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, reported a 2.4 tonne rise in its holdings on Wednesday, bringing its total inflow for the year to 11.7 tonnes. Later today, the US retail sales and consumer sentiment data will be closely watched for further USD moves, which may eventually impact the precious metal. Gold Technical Levels The metal has an immediate resistance at 1085.52/55 (5-DMA/ 1h-50-SMA) and 1090.42/98 (1h 200-SMA/ 10-DMA). Meanwhile, the support stands at 1074.16 (50-DMA) below which doors could open for 1071.10 /1070 (Jan 14 Low/ round number). For more information, read our latest forex news.