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Gold bounces-off fresh weekly-lows

FXStreet (Mumbai) - Gold prices on Comex managed to recover some lost ground and turned in green in the mid-Asian trades, as the greenback took a breather in its upsurge following better-than expected US housing data released on Wednesday.

Gold recovers from 1183.70

Currently, gold trades 0.10% higher at 1188.10 levels, having posted day’s high at 1188.40 and day’s low at 1183.70. Gold prices edged higher on a short-covering rally as traders resorted to profit taking after the recent weakness.

Moreover, muted Asian equities on downbeat Chinese data also support gold bulls, boosting gold’s appeal as an alternative higher yielding asset.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies retreated from session highs at 98.50 and now trades at 98.37 levels, up 0.12% on the day.

Meanwhile, holdings at SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose to 742.35 tons on Tuesday reflecting increased investors confidence in the yellow metal.

Gold Technical Levels

The metal has an immediate resistance at 1190 and 1195 levels. Meanwhile, support stands at 1183.50 levels below which doors could open for 1180 levels.

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