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Gold gains as China data fails to calm market nerves

FXStreet (Mumbai) - Gold prices inched higher today during the Asian session as the Asian equity markets erased gains even though the official data in China showed the world’s second largest economy grew slightly more than expected.

Gold is trading 0.34% higher at USD 1249/Oz while the Asian equity markets have erased gains ahead of the European session. The ASX is trading just 0.10% higher, while the Shanghai composite is down by 0.65%. The Nikkei has lost more than 2% today, while the Hang Seng is trading lower by 0.37%.

Moreover, the weakness in the Asian equities persists despite a better than expected Chinese GDP data. China's GDP expanded 7.3% between July and September from a year earlier, slightly above expectations. However, the economy has slowed down from the 7.5% growth rate clocked in the previous quarter. "Looking ahead, we see that China's growth momentum will only pick up modestly in Q4, as massive policy easing is unlikely," said ANZ economists in a note to clients.

Gold Technical levels

Gold is trading near the immediate resistance of 1250, above which prices can rise to 1263 levels. On the flip side, we could see Gold declining to 1232 levels if the metal fails to sustain at the current levels.

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