8 Dec 2014
Gold recovers ahead of the European session
FXStreet (Mumbai) - Gold prices recovered early losses to trade marginally higher ahead of the European session after the Chinese trade balance data showed a sharp slowdown in imports, which renewed concerns of a slowdown in the world’s second largest economy.
Gold traded 0.25% higher at USD 1193.40/Oz levels at the time of writing. The metal prices recovered early losses after the data showed China's export growth slowed significantly to 4.7% in November compared to 11.6% in October, while imports declined by 6.7% during November, compared to a 4.6% increase in the previous month. The weak trade figures suggest that the economy is unlikely to reach its 7.5% growth target in 2015.
Meanwhile, the German Industrial production data also came-in weaker-than-expected. The production rose 0.8% year-on-year in October. However, gains in the yellow metal are being capped by a strong US dollar post a surprisingly strong US jobs data released on Friday.
Gold Technical Levels
Gold has an immediate resistance located at 1200, above which prices are likely to test 1208.20 levels. Meanwhile, support is located at 1186.40 and 1174.70 levels.
Gold traded 0.25% higher at USD 1193.40/Oz levels at the time of writing. The metal prices recovered early losses after the data showed China's export growth slowed significantly to 4.7% in November compared to 11.6% in October, while imports declined by 6.7% during November, compared to a 4.6% increase in the previous month. The weak trade figures suggest that the economy is unlikely to reach its 7.5% growth target in 2015.
Meanwhile, the German Industrial production data also came-in weaker-than-expected. The production rose 0.8% year-on-year in October. However, gains in the yellow metal are being capped by a strong US dollar post a surprisingly strong US jobs data released on Friday.
Gold Technical Levels
Gold has an immediate resistance located at 1200, above which prices are likely to test 1208.20 levels. Meanwhile, support is located at 1186.40 and 1174.70 levels.