Gold Is Trading Lower In The Asian Session Thursday
$GLD
Gold prices traded higher by 0.14% Vs the USD in the 24 hr frame ending 23:00GMT, at 1096.60 oz. However, gains in Gold prices were kept in check, after the Fed’s monetary policy statement Wednesday afternoon indicated that the US central bank kept the door open for an interest rate hike later this year.
Gold holdings of the SPDR Gold Trust (NYSEArca:GLD), the world’s largest Gold-backed exchange-traded fund, remained unchanged at 680.15 tonnes, from its previous close of 684.63 tonness.
In the Asian session, at GMT0300, the pair is trading at 1092.50, or 0.37% lower from Wednesday’s close.
The pair is expected to see 1st support at 1087.70, a break there could push it to next support at 1082.90.
The pair is expected to see 1st resistance at 1099.40, a break there could drive it to next resistance at 1106.30.
The precious Yellow metal is trading below its 20 Hr and 50 Hr MA’s.
India, the world’s 2nd-biggest Gold buyer after China, imposed the import restrictions last year to avert a trade deficit crisis that pushed the Rupee to record lows.
“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.
Support for Spot Gold comes from jewelry demand from India in the lead up to and during the wedding season, which started in late September. India did record a 176% increase in Gold imports in August to US$2-B from about US$756-M.
Overall, the impact of wedding season Spot Gold buying has faded in recent times as India is no longer the world’s largest Gold consumer, partly because of the on-going government import restrictions on precious metals. If they are further relaxed, perhaps India will regain its Top spot.
India’s Akshaya Tritiya festival considered by India’s more than 900-M Hindus as an auspicious day to buy Gold and Silver, fell on 21 April this year. Bullion is bought in India during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives.
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Paul Ebeling
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