Gold awaits US data
London (Feb 1) Gold prices have hardly moved since last update as investors await US personal spending report and ISM manufacturing figure after data in China showed worsening of the factory activity in January.
Gold supported by risk-off and fears of currency war
The yellow metal witnessed a sharp recovery off lows on Friday and edged higher in Asia and early Europe as the risk-off in the equities and the fears of currency wars following Japan’s negative rates surprise triggered a flight to safety.
Investors now wait to see if the sustained labor market gains and drop in inflation is pushing US household spending higher. The manufacturing sector is in recession and it would be interesting to see f that has resulted in a drop in the ISM manufacturing employment index.
Gold Technical Levels
The metal trades around USD 1124/Oz levels. The immediate resistance is seen at 1123 (Friday’s high), above which the prices could rise to 1136 (61.8% of Oct high-Dec low). On the other hand, a break below 1118.85 (50% of Oct high-Dec low) would shift risk in favor of a drop to 1108.20 (Friday’s low).