Gold on the offers, but holds above $ 1180 post-China CPI

A minor-recovery staged by the US dollar combined with dismal Chinese inflation data, keeps the selling bias intact on the Comex gold futures in the Asian session this Tuesday.

Gold faces stiff resistance just ahead of $ 1183

Currently, gold now loses -0.30% to $ 1181.75, having posted session lows at $ 1180.50 and session tops at $ 1183.75. The bullion remains on the back foot, as the bulls correct a part of yesterday’s massive rally, which sent the metal to fresh five-week highs.

Gold keeps losses so far this session, as markets digest poor Chinese CPI data, which stoked fears over the Chinese economic prospects, weighing down on gold demand from the world’s top consumer of the yellow metal. Further, a broad based US dollar recovery from Fedspeaks-induced drop also collaborates to the downside momentum seen in gold.

However, the losses remain restricted in light of negative performance on the Asian equities, as attention turns towards the US JOLTS job openings data due later in the NA session.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1186.35 (5-week high) and 1200 (round figure). Meanwhile, the support stands at 1178.10 (5-DMA) below which doors could open for 1170.77 (50-DMA).