Gold hovering around $1080 mark, minor upside correction expected

During Thursday's trading session, European stocks partially recovered and the dollar erased most of its losses, which led to a slide in the gold price. Futures for gold slumped 1.31% to trade at an intraday low of $1,072.80 per troy ounce on Thursday, levels last seen on January 5.

Additionally, Chicago Fed President Charles Evans voiced concerns about slipping inflation expectations and the potential effects of China's economic slowdown on the US economy. Both statements lowered the market's expectations for another rate hike, which led to the dollar's dive and therefore, gold's advance.

Currently Gold is hovering around $1080 levels and while looking at the daily chart, minor upside correction is expected. Later today US will publish retails sales as well as Prelim UoM Consumer Sentiment data which will provide further direction to the parity.

To the down side, support levels are seen at $1076, $1072 and $1061 levels.

Initial resistance levels are seen at $ 1082, $1087 and $1097 levels.

We prefer to take long position in XAUUSD, Entry @ $1078-1080, stop loss @ $1072 and take profit at $ 1092 levels.