Gold (GLD) Extending Gains In Asia Wednesday

$GLD

Gold prices traded higher 0.37% Vs the USD in the 24 hr frame ending 23:00GMT, at 1167.70 oz.

Prices were boosted as poor Chinese trade data weighed on the global stock markets, and expectations rose that the US Fed will not raise interest rates in Y 2015.

In the Asian session, at GMT0300, Gold is trading at 1173.1, or 0.46% higher from Tuesday’s close.

Gold is expected to see 1st support at 1158.10, a break there could push it to next support at 1143.10.

Gold is expected to see 1st resistance at 1181.30, a break there could drive it to next resistance at 1189.50.

The precious Yellow metal is trading above its 20 Hr and 50 Hr MAs.

Support: 1162, 1154.00 – 1150.00 – 1142.00

Resistance: 1173.00 – 1180.00

Direction: Bullish.

 

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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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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