•Gold prices rose on Tuesday as lacklustre Chinese factory activity data sent Asian shares lower, rekindling concerns about the health of the global economy.
Investors now await the U.S. Federal Reserve’s two-day policy meeting starting later in the day for clues on the interest rate outlook.
Spot gold rose 0.3 percent to $1,283.69 per ounce at 0503 GMT. U.S. gold futures were up 0.3 percent at $1,285.60 an ounce.
•“There is a broad bearish sentiment across Asia market opening this morning as a very disappointing China manufacturing PMI triggered a sell-off in currencies and emerging markets and equity markets,” said Margaret Yang, an analyst with CMC Markets in Singapore.
•Gold is yet to overcome the bearish factors, and any rallies in the metal might will be short-lived, INTL FCStone analyst Edward Meir said in a note.
“We do not recommend establishing length at current levels on gold, given the lack of upside drivers. Although the dollar is not moving higher on the back of strong macro readings, it is not coming down either; neither are the U.S. long-term rates,” Meir added.
•Descending wedge and lines of support and resistance suggest entries for sells and buys following negative trendline . Descending wedge suggests a longer term bullish trend so a break from 1255-1240 for the upside and highs forecasted by Goldman Sachs of 1450 line up with this hypothesis
•GOLD TECHNICAL ANALYSIS
Gold prices remain wedged between support in the 1260.80-63.76 area and resistance marked by the recently broken neckline of a Head and Shoulders (H&S) topping pattern, now at 1290. A break below the former level sees the next downside barrier in the 1235.11-38.00 zone. Alternatively, a push above resistance sets targets the $1300/oz figure. The H&S setup implies an overall downside target at 1215.00.
•Elsewhere, silver gained 0.4 percent to $14.96 per ounce, while platinum was steady at $893.90.
Palladium, on the other hand, was up 0.6 percent at $1,378.40, having fallen by over 7 percent to bottom at $1,361.50 in the previous session.
Reference : Reuters, Daily FX, Trading View
Thai
Eng