Gold bid in Asia, attempts break above 50-hour MA
By Omkar Godbole- Gold is reporting gains in Asia and is flirting with the 50-hour moving average (MA) hurdle.
- The major MAs indicate the gains will likely be short-lived.
Oversold conditions have likely put a bid under gold in Asia, consequently, the yellow metal is flashing green.
At press time, gold is flirting with the 50-hour moving average (MA) hurdle of $1,244, having clocked a 2018 low of $1,236 on Friday.
The hard currency has dropped 9.45 percent in the last three months on increased prospects of faster Fed tightening and breached a long-term ascending trendline support on Friday.
Further, the intraday charts remain biased toward the bears as the 100-hour MA is located below the 200-hour MA. So, corrective rallies could be short-lived.
On the data front, China's Q2 GDP today will be closely watched for evidence of a slowdown due to trade tensions. Also scheduled for release are monthly retail sales, industrial production figures. A weaker-than-expected GDP reading could add to the bullish tone around the safe haven yellow metal.
Gold Technical Levels
Resistance: $1,244 (50-hour MA), $1,248 (100-hour MA), $1,252 (200-hour MA).
Support: $1,239 (support on the hourly chart), $1,236 (Friday's low), $1,234 (50-month MA).
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