Gold is slightly lower in Asia on Wednesday,...>

GOLD: Gold is slightly lower in Asia on Wednesday, the yellow metal last down

$1.23 at $1281.86. Though gold is off slightly today the precious metal is some

$15/oz higher than the open of Asia on 22 December and is around the highest

levels of December. Gold was boosted after the US imposed more sanctions on

North Korea earlier this week and as US yields declined alongside the USD.

- The dip in bullion came as Chinese Industrial Profit slowed in Q4, wages and

employment growth in particular were weak which suggest slowing momentum.

- MNI technical analysis sees support at $1272.8 - Hourly support Dec 26,

resistance is seen at $1286.6 - 100-DMA. The recovery from Dec lows has resulted

in closes above the 55-DMA ($1275.8) and bear channel top ($1276.7) with

immediate focus on $1289.5 today. Bulls look for a close above this level to

hint at a move back to the $1306.0-1320.0 region. Daily studies have a little

room to move before O/B becomes an issue. Bears now need a close below $1272.8

to ease bullish pressure and below $1259.2 to shift focus back to $1235.9.