Gold kicks-off 2017 with a bang, $ 1160 closer

Dhwani Mehta FXStreet

Gold futures on Comex kicked-off the New Year on a solid footing, making a solid comeback in the Asian trades this Tuesday amid returning market volatility as holiday-period ends.

Gold firmer, despite USD strength

Currently, gold jumps +0.59% to fresh daily tops of $ 1158.75, having bounced-off $ 1150 levels earlier on the day. The bullion is seen extending its shine in the mid-Asian trades, as the greenback retreats slightly from the bullish opening gap witnessed today against its main competitors.

Moreover, better-than expected Chinese manufacturing PMI data eased worries over China economic growth, and refueled expectations of increased gold demand from the world’s top yellow metal consumer, which in turn added to the renewed upside in gold.

Markets now eagerly look forward to the US macro releases lined up in the week ahead, especially the payrolls data, in a bid to confirm the resurgent USD demand, which will eventually have a significant impact on the gold price-action going forward.

Comex Gold Technical Levels

The metal has an immediate resistance at 1160 (round figure) and 1162 (2-week highs). Meanwhile, the support stands at 1150 (daily low) below which doors could open for 1143.42/1142.29 (20 & 10-DMA).

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.

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