Gold thrown lifeline by Asian buyers

Early trade has seen the gold price ostensibly buoyed by Asian buyers stepping up bullion purchases after the recent price plunge, which was the biggest in 30 years.

The gold market has been subject to a multitude of bearish forecasts, yet the price breezed through the $1400/oz level overnight adding a further 1.8% on the top.

Resistance at $1425 appears to be holding, with support coming in around the $1385 intraday.

A close above this level might negate the probability that we are merely witnessing a short-lived relief rally, given that the sentiment remains rather cautious in light of recent events.

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