Gold catches fresh bids, regains $ 1130 amid thin trading

Gold jumped back on the bids above $ 1130 barrier and now looks to extend the recovery amid renewed weakness seen in the US dollar, while pre-holiday season lull persists in the market.

Gold: Will it take-out 5-DMA at 1132.67?

Currently, Comex gold futures trade marginally higher at $ 1131.55, staging a solid recovery from yesterday’s low struck at 1128.30. The bullion continues its bearish consolidative mode, wavering in a tight range around 1130 levels, as the greenback also trades subdued against its main competitors amid slow volumes and minimal volatility ahead of the Christmas/ Year-end holiday season.

Meanwhile, gold takes positive cues from weaker Asian equities and negative oil prices, which keep the demand for risky assets at bay, and in fact boost the safe-haven bids for the bullion. Also, yesterday’s US dataflow left the USD largely unchanged, and eventually had negligible impact on the USD-sensitive gold.

Later today, the US new homes sales and revised consumer sentiment data are also likely to virtually have no impact on the yellow-metal.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1132.67 (daily S1/ 5-DMA) and 1134.47 (daily R2). Meanwhile, the support stands at 1129 (round figure) below which doors could open for 1126.90 (Dec 16 low).