Gold: Recovery losing steam ahead of Chinese data

• Firmer Treasury yields, US dollar keeping the recovery capped
• Awaits China macro data for fresh trading impetus.

Gold (futures on Comex) stalled its minor recovery from weekly lows of 1280.10 levels and now trades flat near 1282 levels, as the bulls await the Chinese GDP release for further trading impetus.

The yellow metal attempted recovery in early trades in anticipation that disappointing Chinese growth numbers would re-ignite China slowdown concerns and eventually risk-aversion across the markets, boosting the safe-haven bids for gold.

However, the recent gains in the US Treasury yields combined with broad-based US dollar strength keeps a check on the renewed upside. On Friday, gold prices fell sharply after the US equities and the greenback was lifted by improved risk appetite amid hopes for a resolution in the China-US trade war.

The immediate focus now remains on the Chinese GDP, retail sales and industrial production data for fresh trading incentives while the risk trend will continue to remain the main driver amid holiday-thinned trading.

Gold Technical Levels