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Gold ends a 7-day rally, drops below 200-DMA

FXStreet (Mumbai) - The yellow metal halted its 7-day winning and fell into losses on Tuesday, on the back of weak China import data and profit-taking after the recent strength.

Gold trades below 200-DMA

Currently, gold trades -0.76% at 1155.60, moving further away from fresh seven-week highs posted at 1168.60 on Monday. Gold prices dropped sharply this session, reversing entire previous gains as the bigger-than expected drop in the Chinese import data raised demand concerns for the bullion from the world’s largest gold consumer, weighing heavily on the prices.

Moreover, a fresh round of profit-taking also knocked-off the bullion below 200-DMA located at 1161.97 levels as traders resorted to locking-in gains after the recent upsurge.

Gold prices rallied to fresh multi-week highs on Monday as the gold bulls cheered the increased talks of Fed’s inaction until March 2016.

Looking ahead, nothing relevant is likely on the card in the US session today while China’s CPI data due tomorrow will be closely watched for further momentum.

Gold Technical Levels

The metal has an immediate resistance at 1161.97 (200-DMA) and 1169 (Aug 24 High) levels. Meanwhile, support stands at 1151.60 (Oct 9 Low) levels below which doors could open for 1148.42 (10-DMA).

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