The recovery in the yellow metal from weekly lows lost legs following the release of the Chinese trade report, which revealed that the country imports slumped sharply last month.
Gold modestly flat at 1336, easing slightly from session highs previously posted at 1337.70. The bullion failed to sustain at higher levels and drifted lower hour, in wake of a steep drop seen in the Chinese imports data, which underscore demand concerns front the world’s top gold consumer. China imports CNY (YOY) for July dropped -5.7%, while China imports USD (YoY) for Jul slumped -10.5%.
While stronger-than expected US payrolls data refueled bets for a Sept/Dec Fed rate and hence, keeps the non-interest bearing gold undermined. The US economy added 255,000 jobs last month, beating the consensus forecast of 180,000.
Looking ahead, markets will digest the Chinese data before the release of the US labor market conditions index due later in the NA session. While China’s CPI and industrial production figures will be closely eyed along with the US retail sales data, lined up for release late this week.
The metal has an immediate resistance at 1345 and 1350.21. Meanwhile, the support stands at 1330 below which doors could open for 1328.