Return of Chinese market has limited impact on Gold
SHANGHAI (Scrap Register): The return of the China, the world’s largest gold-consuming nation, from Lunar New Year holidays provided little price direction for gold during Asian hours, said MKS (Switzerland) S.A.
“An initial bid tone on the Shanghai open was soon reversed, driven by a leg higher to USD/China, while the on-shore premium held underneath $8 for the majority of the session, considerably lower than what we were seeing leading into the New Year break ($10-$12 previously),” MKS noted.
“The firmer dollar brought about a test toward $1,310 during the lunch break; however, resting bids and a tempering of dollar strength in afternoon trade kept price action buoyant into European hours,” MKS added.
Prices later softened further. MKS looks for support around $1,305 to $1,310 an ounce to provide a suitable base for a move higher once again. Resistance was put at $1,320 to $1,325.