Gold rebounds in Asia on profit taking ahead of US data

By FXStreet Having bottomed out near 1218 region in overnight trades, gold staged a solid comeback in the Asian trades on the back of profit-taking after the recent weakness.

Gold back above $ 1230

Currently, gold jumps +0.51% to 1231.45, retreating slightly from fresh session highs reached at 1234.38 over the last hours. The bullion finally brought an end to its six-day losing streak and climbed higher from seven-week troughs as markets resorted to profit booking ahead of the key risk events for gold this week, the US durable goods and GDP figures due today and tomorrow. The upcoming crucial economic releases from the US may provide fresh insights on the strength of the US economic recovery and eventually on the Fed’s rate hike prospects this year.

Moreover, a fresh selling seen across the Asian markets on retreating oil prices, triggered a renewed risk-aversion wave this session and therefore, underpinned the safe-haven bids for gold. Meanwhile, the US dollar index drops -0.25% to 95.16, retracing from 95.41 highs. Apart from the US macro updates, the bullion will also take cues from the Fedspeaks due later in the NA session.

Gold Technical Levels

The metal has an immediate resistance at 1235 (round figure) and 1244 …read more

Source:: FX Street