Gold is traditionally acts as a protective asset. This explains the current growth of quotations of precious metal. The need for protecting assets still provoking a situation in China. Most Asian markets fell again today after data on business activity in the industrial sector of China signaled the continued deceleration (PMI came in at 47.3). All this shows that the economy is in search of the “bottom“. In addition, the market is experiencing some serious concerns that the actions of the regulator of China will not bring the desired result. If today also data on business activity in the industrial sector will be a disappointment for the US dollar, rising gold can only accelerate.
In the area of 1147.04 level gold formed a resistance. Therefore, as soon as the quotes will consolidate above this mark, the market will return to the “bulls” that will accelerate growth with the immediate goal near recent highs.