Gold retreats from 2-week highs in Asia

By FXStreet FXStreet (Mumbai) – Having booked 2% gains on Monday, the yellow metal retreated slightly from two-week highs in Asia on the back of a recovery in Asian stocks and a broadly higher greenback.

Gold holds above hourly 200-SMA at 1070.34

Currently, gold trades modestly flat at 1075.50, retracing from 2-week highs reached at 1083 levels printed on Monday. Gold prices halted its upbeat momentum and are currently consolidating previous heavy gains, after Monday’s rout in the Chinese equities sparked flight to safety across the financial markets and boosted the bids for the safe-haven in gold.

Moreover, escalating geopolitical tensions between Saudi Arabia and Iran after the former executed a prominent Shia cleric Nimr al-Nimr, triggered renewed bout of risk-aversion and favoured the bullion.

Meanwhile, gold prices tread water amid rebounding Asian stocks, led by a sharp recovery in China’s stock market and now look to track the USD moves for further momentum as the macro calendar remains light for today.

Gold Technical Levels

The metal has an immediate resistance at 1083 (Jan 4 High) and 1086.50 (Dec 7 High). Meanwhile, the support stands at 1070.34 (1h 200-SMA), below which doors could open for 1063.20 (Jan 4 Low).
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Source:: FX Street