US Dollar Pushes Gold Prices Down

Risk appetite has increased and the US dollar has returned to gains, and gold prices have suffered losses despite the weak Chinese economic data. Gold fell to $1276 an ounce and settled at $1279 Tuesday. Gold gains last week reached $1296 and failed to test the psychological peak of $1300 which will support the bullish trend.

In terms of important economic data, China's gross domestic product grew 1.5 percent in the fourth quarter of 2018, in line with expectations and down from 1.6 percent in the third quarter. On an annualized basis, China's gross domestic product (GDP) grew by 6.4 percent - as expected, down from 6.5 percent in the previous three months amid pressure from declining domestic demand and the continuation of the US-China trade war.

The growing signs of weakness in China have raised concern about the risks to the global economy, but at the same time boosted expectations for further fiscal stimulus.

The US dollar steadied near a two-week high and gold prices were negatively affected as it has an inverse relation with the dollar, and gains were boosted by hopes of improved trade relations between the United States and China after an official familiar with negotiations told Bloomberg that China would seek to reduce its trade surplus with the United States by increasing annual imports of goods with a aggregated value of more than $ 1 trillion.

The most important support levels for gold today: 1274, 1260 and 1252 respectively.

The most important resistance levels for gold prices today: 1285, 1300 and 1312, respectively.

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