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Gold recovers losses after Chinese PMI survey

FXStreet (Mumbai) - Gold prices recovered from the day’s low after the preliminary HSBC data showed manufacturing activity declined in China.

Gold traded 0.77% lower at USD 1184.70/Oz levels at the time of writing compared to the previous session’s close of USD 1193.30 levels. The metal declined to USD 1176.3 levels earlier today on expectations that the Federal Reserve is set to increase the interest rates next year. Moreover, the minutes released yesterday did not provide any surprises despite which Gold declined as the policy makers warned about the falling inflation expectations in the US.

However, the yellow metal recovered today after the HSBC PMI data showed Chinese factory growth fell to a six-month low. The flash PMI reading came-in at 50.0 from a final reading of 50.4 in October and well below the 50.3 forecast.

The yellow metal may extend gains if the flash PMI readings across the Eurozone increase the fears of a slowdown in the Eurozone.

Gold Technical Levels

Gold has an immediate resistance located at 1193.60, above which gains could be extended to 1200. Meanwhile, support is seen at 1175 and 1164.25 levels.

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