Gold price remained almost unchanged, though the price took a dip to reach the two-weeks low. There is a selling pressure continuing from Friday but short covering and Asian demand are balancing the price.
Comex gold futures for August delivery were down by $0.10 to be traded at $1,382.90/ounce. Gold price in the spot market was also down but with $3.20 to be traded at $1,381.90/ounce.
News from Asia supported gold price to stand firmer than expected in front of the selling pressure. Economic data from China came weaker than expected, indicating a sluggish economic growth. These data bolstered the safe-haven demand on gold. The Nikkei stock recovered above the 13,000 level by more than 500 points, gaining around 5% on Monday.
The USD index gained on short covering after slipping the past few days. These gains put more pressure on gold price, as gold price correlates negatively to the USD.
Gold price in todays, Monday, London AM fixing was at $1,376.75 while the previous PM gold price fix was at $1,386.
On the technical side, the bulls lost some of their momentum on the US economic data released on Friday. The bears still have a technical advantage and 8-months old downtrend is still intact. The gold bears next short-term objective is to close a session under the price of May’s low at $1,338. The bulls need to gain again and close the price higher than $1,423.30, last week’s high.
Gold price current technical support is at $1,375.60 then at $1,370 while technical resistance is currently at $1,387.70 then at the psychologically solid resistance at $1,400.