Tuesday’s Technical Analysis For: Gold (GLD)
$GLD
Gold fell quickly in the Asian session to trade below its 20-Day SMA, and below 1142.00, Fibo 61.8% retrace, and accompanied by negative signals on ADX and RSI.
However, Gold stabilized above the Key support line and above its 50-Day SMA, while trading above 1134.00 keeps Bullishness possible.
From this point see contradiction between technical signs, but trading above 1142.00 again will another Bullish attempt.
Outlook for now is Neutral between 1134.00 – 1142.00.
Support: 1134.00 – 1130.00 – 1125.00
Resistance: 1142.00 – 1150.00 – 1154.00
Direction: Sideways
Position: Neutral, standing aside
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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 starts again 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 buyGold 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.
Stay tuned…
HeffX-LTN
Paul Ebeling
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