- Gold is alternating gains with losses in Asia around $1,567.
- China’s equity markets are flashing red, while the dollar has pulled back from overnight highs.
- The focus is on the broader market sentiment and China’s trade data.
Gold is struggling to maintain its recent upside momentum despite losses in Chinese stocks.
Bounce stalls
Having defended the support at $1,548 – the 38.2% Fibonacci retracement of the rally from $1,445 to $1,611 – on Wednesday, the yellow metal rallied to $1,569 on
Thursday.
The bounce, however, has stalled in Asia with buyers struggling to punch above the overnight high.
The momentum has weakened despite signs of risk aversion in the Chinese stocks. The Shanghai Composite index gapped lower by 0.30% and is currently trading at
2,862, representing a 0.12% loss on the day. The futures on the S&P 50 are also reporting a 0.14% on the day.
Also, the dollar index, which tracks the value of the greenback against majors, has pulled back to 98.44 from the overnight high of 98.57. Even so, the metal bulls are sitting o the sidelines.
That said, the buying interest could strengthen if the equities post bigger losses and China’s trade data prints well below estimates, bolstering fears of a deeper economic slowdown.
Technical levels
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