Gold extends recovery from 5-DMA post-Chinese data

Gold is seen reversing a dip to near 5-DMA at $1163.50, and now reverts towards daily highs, as the bulls found fresh impetus from upbeat Chinese data dump released for the month of November.      

Gold looks to take-out stiff resistance near $ 1167

Currently, Comex gold futures trade marginally lower at 1165.25, retreating slightly from daily lows struck at $ 1163 last hour. Gold prices keep its minor-recovery mode intact in the Asian hours, as the safe-haven bids for the yellow metal remain underpinned amid negative Asian equities and subdued trading activity seen around the greenback across the board.

Moreover, better-than expected Chinese industrial production and retail sales data eased concerns over economic slowdown in the world’s top gold consumer – China and hence, provided extra legs to the recovery in the bullion.

Next of note for the major remains the US macro news due tomorrow, amid a lack of US events in the day ahead. While the FOMC decision due out tomorrow will remain the main market moving event for this month.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1167.75 (previous high) and 1170 (round figure). Meanwhile, the support stands at 1163 (daily low) below which doors could open for 1153 (multi-month low).