Gold flat lined around $1350 on mixed China data

Gold is trading dead flat around $1350/Oz amid batch of China data and slightly hawkish comments from NY Fed’s William Dudley.

USD weakness supports Gold

The yellow metal spiked on Friday to a high of $1355 levels on USD weakness and that continues to support prices in Asia as well. The upside in the metal has been capped by a jump in China Caixin PMI manufacturing data and Fed’s Dudley who said market views on interest rates are too pessimistic and the Fed could tighten policy at a faster rate if the economy grows more than 2%.

The metal remains at the mercy of USD index and sentiment in the equity markets following upbeat China data release.

Gold Technical Levels

A breakdown of support at $1345 (5-DMA) would expose $1330 (Friday’s low). A violation there could yield $1311 (July 21 low). On the higher side, acceptance above $1350 would open doors for $1358 (June 24 high). Next major hurdle is seen at $1375 (July 10 high).