NEW YORK (Commodity Online): Gold prices are holding above the psychological $1750 level as European and Chinese economic data have disappointed investors looking for signs of economic growth.
COMEX gold December is currently trading at $1770/oz, down about $21 for the day.
-Chinese Trade surplus fell to $17 billion against market expectations of $26.3 billion and exports for October was just $157.5 billion, lowest in 5 months and the smallest growth since December 2009on a YoY basis.
-French industrial production, a leading indicator of economic activity, declined by 1.7% MoM and surprised investors particularly after activity had increased by 0.5% in August.
-The European Commission stated on Thursday that Europe is facing a significant risk of recession while cutting its 2012 Euro growth projection to a dismal 0.5%.
Technically, levels to watch out for are $1837 and $1770 while support at $1680 and $1725 can be expected. An RSI divergence is seen at current high and as such, downside risk cannot be ruled out.
