Gold Is Extending Losses In Asia Friday
$GLD
Gold prices traded lower by 0.74% Vs the USD in the 24 hr frame ending 23:00GMT, at 1124.20 oz, due to broad gains in the USE, along with a rally in global equity markets, which dampened the demand of the safe-haven metal. Also, uncertainty over the Fed’s upcoming interest rate decision weighed on precious Yellow metal prices.
In the Asian session, at GMT0300, Gold is trading at 1123.9 marginally lower from Thursday’s close.
Gold is expected to see 1st support at 1118.66, a break there could push it to next support at 1113.43.
Gold is expected to see 1st resistance at 1131.4667, a break there could drive it to next resistance at 1139.03.
The precious Yellow metal is trading below its 20 Hr and 50 Hr MAs.
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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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