Tuesday’s Technical Analysis For: Spot Gold (GLD)
$GLD
Spot Gold closed higher Monday.
The high range close set the stage for a steady to higher open Tuesday on COMEX.
Stochastics and the RSI are oversold but remain Neutral to Bearish indicating that sideways to lower prices are possible near term.
If Spot Gold extends its decliner off of the August highs, the July low crossing is the next Southside target.
Closes above the 20-Day MA crossing are needed to confirm that a low marked.
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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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