Gold: Recovery intact on solid Chinese imports, ECB eyed

Dhwani Mehta FXStreet

Gold keeps its Asian recovery mode intact, although eased slightly from session tops on the back of resurgent demand for risky assets such as the equities, in wake of upbeat Chinese trade numbers.

Gold flirts around $ 1180

Currently, Comex gold futures trade with mild gains around 1179.20, retreating slightly from session tops reached at $ 1180.55. Gold prices find support from better-than expected Chinese imports and exports figures released earlier on the day for the month of November, highlighting increased external demand from the world’s top consumer of gold.

However, further recovery appears to lack follow-through as upbeat China data has brought along a renewed risk-on wave into markets, curbing the demand for gold as a safe-haven. Next of note for the major today remains the ECB decision due later in the day.

Comex Gold Technical Levels

The metal has an immediate resistance at 1185.40 (daily R2) and 1189.46 (20-DMA). Meanwhile, the support stands at 1175.58 (5-DMA) below which doors could open for 1157 (multi-month low).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.