Wednesday, September 23, 2015

Gold trims losses on China’s PMI shocker, around $ 1124

FXStreet (Mumbai) - A renewed wave of risk-aversion gripped markets across Asia after weak Chinese PMI data reinforced worries over China’s economic health, thus lifting the sentiment around the traditional safe-haven asset- gold.

Gold recovers from 1121.10 lows

Currently, gold trades -0.09% lower at 1123.80, bouncing-off a brief dip to lows struck at 1121.10. Gold prices extend the recovery from 1020.50 levels reached on Tuesday and trim losses as risk-off sentiment intensified following the release of tame Chinese PMI data.

Moreover, falling Asian equities and as well as a broadly weaker US dollar on the back of risk-aversion also supports the recovery in the bullion.

Meanwhile, the US dollar index, the virtual gauge of the greenback’s relative strength, trades -0.06% lower at 96.44, retreating from 96.65 levels seen in opening hours.

On Tuesday, gold pulled further away from the two-week high as continued talk of a Fed rate hike later this year propped up the greenback.

Gold Technical Levels

The metal has an immediate resistance at 1130.50 (Sept 17 High) and 1138.50 (Sept 21 High) levels. Meanwhile, support stands at 1120 below which doors could open for 1117.10 (Sept 17 Low) levels.
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