Gold unmoved by big miss on China data

Gold traders around $1340/Oz, largely unaffected by a weaker-than-expected industrial production and retail sales release in China as investors await US retail sales number.

Rebounds from 23.6% Fibo support

Prices neared support at $1333.50 (23.6% of May 30 low – July high) in early Asia before turning higher to $1340 ahead of the China data release. Both industrial production and retail sales in the world’s second largest economy missed estimates, despite which the safe haven metal stays comatose around the level seen ahead of the data release.

Investors await US advance retail sales print which could alter Fed rate hike bets and influence overall demand for the US dollars.

Gold Technical Levels

5-DMA level of $1340 is proving out to be a tough resistance in Asia. Acceptance above the same would add credence to the rebound from near 23.6% Fibo support of $1333.50 and open doors for 10-DMA at $1346. Further gains could run into offers around the weekly high of $1357.10. On the other hand, a breakdown of support at $1333.50 (23.6% Fibo) would expose $1329 (Aug 8 low), under which a major support is seen directly at $1319 (50-DMA).