Gold better bid in Asia, re-takes 50-DMA

Gold makes minor-recovery attempts in the Asian session this Friday, and remains poised to book second straight weekly gains amid resumption of the decline in the greenback across the board.

Gold ignores China data

Currently, gold trades +0.108% higher at 1338.40, hovering close to session highs reached at 1338.90 some minutes ago. The yellow metal remained largely unfazed by weaker-than expected Chinese inflation figures, which highlights softer demand conditions in the world’s top metal consumer. However, yesterday’s solid import figures from China continue to offer some respite to the gold bulls.

Further, the US dollar is seen reversing a part of the ECB-backed rally and falls back in the red against its major competitors, which also aids the recovery in gold. The USD index drops -0.15% to 94.90 levels.

Looking ahead, the bullion will closely track the USD price-action in absence of key macro news from the US docket, while FOMC member Rosengren’s speech will have some influence on the non-interest bearing precious metal.

Gold Technical Levels                                   

The metal has an immediate resistance at 1355 (falling channel resistance) and 1360 (round number). Meanwhile, the support stands at 1333 (20-DMA) below which doors could open for 1326.45 (1h 200-SMA).