Gold turns positive ahead of China trade, tests $ 1340

Gold rebounded sharply from near two-week lows and now heads towards 1340 levels, as the demand for safe-havens returned amid increased nervousness ahead of the Chinese trade data release.

Gold re-takes $ 1340 mark?

Currently, gold trades +0.42% higher at $ 1339, having posted day’s high at 1340.01 and day’s low at 1327.54. Gold prices turn positive and correct a part of yesterday’s steep losses on easing Brexit-led political uncertainty as the UK announces new PM, Theresa May. Moreover, the ongoing risk-on rally in the global equities also collaborated to the losses in the bullion to the tune of -1.50% a day before.

Gold staged a solid comeback this session and resumed its recent upbeat momentum as investors flocked to the safe-haven ahead of the Chinese trade balance report. Moreover, stalled Asian markets rally also lifts the demand for gold as an alternative investment asset, while looming concerns over the South China sea dispute also boost the flight to safety theme in Asia.

Gold Technical Levels                                   

The metal has an immediate resistance at 1350 (5 & 10-DMA confluence) and 1355 (1h 100-SMA). Meanwhile, the support stands at 1327.54 (daily low) below which doors could open for 1321.66 (20-DMA).