Back
4 May 2015
Gold rebounds from 6-week lows near $1184
FXStreet (Mumbai) - Gold prices on Comex bounced-back sharply from six week lows in Asia and extends its recovery mode in the early European trades largely on a short-covering rally and also as Asian equities tumbled on weak Chinese PMI data boosted the safe-haven demand in gold.
Gold back above $1180
Currently, gold trades 0.79% higher at 1183.80 levels, recovering from fresh six week lows reached at 1168.40 on Friday. Gold edged higher as traders took to locking-in gains on their gold shorts after the US dollar index gained nearly 0.50% to 95.08 points on Friday as investors cheered solid US manufacturing reports and upbeat consumer confidence.
Moreover, weak Chinese manufacturing PMI reading dragged Asian equities lower, thus supporting the safe-haven appeal of gold.
Further, a pick-up in Asian physical buying reflected by premiums on the Shanghai Gold Exchange which is up to $3-$4 on Monday from about $2 last week also added to the gains in the yellow metal.
Meanwhile, markets will be closely watching US economic data due this week, including the nonfarm payrolls report for April due on Friday. Soft data could prompt the Fed to delay a rate rise and boost non-interest-paying gold.
Gold Technical Levels
The metal has an immediate resistance at 1188 and 1194 levels. Meanwhile, support stands at 1180 below which doors could open for 1174 levels.
Gold back above $1180
Currently, gold trades 0.79% higher at 1183.80 levels, recovering from fresh six week lows reached at 1168.40 on Friday. Gold edged higher as traders took to locking-in gains on their gold shorts after the US dollar index gained nearly 0.50% to 95.08 points on Friday as investors cheered solid US manufacturing reports and upbeat consumer confidence.
Moreover, weak Chinese manufacturing PMI reading dragged Asian equities lower, thus supporting the safe-haven appeal of gold.
Further, a pick-up in Asian physical buying reflected by premiums on the Shanghai Gold Exchange which is up to $3-$4 on Monday from about $2 last week also added to the gains in the yellow metal.
Meanwhile, markets will be closely watching US economic data due this week, including the nonfarm payrolls report for April due on Friday. Soft data could prompt the Fed to delay a rate rise and boost non-interest-paying gold.
Gold Technical Levels
The metal has an immediate resistance at 1188 and 1194 levels. Meanwhile, support stands at 1180 below which doors could open for 1174 levels.