Gold is higher in Asia-Pac trade, the yellow...>

GOLD: Gold is higher in Asia-Pac trade, the yellow metal last up $5.01 at

$1,329.17 despite broad risk on trade in Asia. Gold posted the biggest drop in 2

months on Tuesday, dropping 1.95% from peak to trough, the upside today only

retraces about a third of this move and is attributed to protection against

further volatility. Chinese stocks prove that markets are still vulnerable,

after moving sideways in early trade some weakness in the property sector

sparked a sell off that pushed mainland China indices into negative territory.

This move saw bonds catch a bid and accelerated the upside move in gold.

- MNI sources note that after hitting a 3-week low on Tuesday there is also

evidence of some bargain hunting in the precious metal.

- MNI technical analysis sees support at $1319.9 - Low Feb 6, resistance is seen

at $1339.0 - Hourly support Feb 6 now resistance. Bounces remain capped ahead of

$1352.3 with bulls needing a close above this level to regain the upper hand and

above $1374.9 to confirm focus on $1391.8-1433.3. Layers of support are starting

to build with bears now needing a close below $1315.4 to reconfirm focus on

$1302.5-1305.6. Daily studies have room to move before O/S is an issue.