Friday’s Technical Analysis For: Gold (GLD)
$GLD
Gold futures on the COMEX division of the New York Merc fell Thursday for a 5th session running, even as slightly worse-than-expected data dragged the USD, and stocks lower.
The most active Gold contract for Dec delivery lost 1.5, or 0.13%, to settle at 1,113.7 oz
Gold continues to trade in a Bearish mode after marking a Bearish crossover of the 20 and 50-Day MA’s, and ADX is showing the strength of the downtrend.
The Bearishness is valid, but a break below 1120.00 affirmed the direction, now targeting 1108.00.
A break below those marks will will negate any corrective actions.
Overall, Neutral to Bearish
Support: 1108.00
Resistance: 1125.00 – 1130.00 – 1134.00
Direction: South
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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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