Gold prices rose after mixed manufacturing and services data out of China.
- The Chinese Manufacturing Purchasing Managers' Index (PMI) eased from 49.7 in December to 49.4 last month, the lowest reading since August 2012.
- A separate manufacturing PMI run by Caixin and Markit came in at 48.4 in January, up from 48.2 in December.
- XAU/USD is currently trading around major resistance at $1122.00 levels.
- Pair made intraday high at $1122 and $1115.31 levels.
- A break above $1122 levels may drag the parity towards $1127 and $1132 level thereafter. In long run $1152 level can be seen.
- On the other side, support levels are seen at $1117, $1112 and $1102 levels.
We prefer to take long position on XAU/USD around $1120, stop loss $1108 and target $1132 levels.