Gold attempts recovery on China data, back at $1330

Having found strong bids at 20-DMA once again, the gold prices take on a minor-recovery back towards 1330 levels as upbeat Chinese data underpin demand prospects.

Gold bounces-off $ 1226

Currently, gold trades -0.45% lower at $ 1329.40, extending recovery from lows struck ahead of 20-DMA support of 1326.18. Gold is seen trimming losses as the demand outlook for the yellow metal improves, after above estimates Chinese economic releases poured cold water on China slowdown concerns, which may revive gold’s demand in the world’s top gold consumer.

However, the recovery lacks momentum amid persisting risk-on market profile, further fuelled by upbeat China data dump, with the Asian equities bouncing higher along with oil prices.

Next of relevance for the bullion remains the US macro updates due later in the NA session, while markets continue to digest the Chinese news.

Gold Technical Levels                                   

The metal has an immediate resistance at 1339.72 (5-DMA) and 1350.38 (10-DMA). Meanwhile, the support stands at 1326.18 (20-DMA) below which doors could open for 1320 (round number).