Gold Stabilizing Ahead Of FOMC Interest Rate Announcement
$GLD
Gold succeeded in moving upwards, stabilizing above the 20, 50-Day MA’s, and above 23.6% Fibo mark too.
Until now, Gold did not touch 38.2% Fibo at 1125.00-1126.00 and that would bring a re-test attempt to touch it.
ADX shows the ability to assist Gold Bulls to move higher, but RSI14 may trigger the fluctuation.
Holding to a Bullish scenario in here, but a breakout above 1126.00 is required to prove the strength of the Bullish trend, targeting 1134.00.
On the Southside, coming below 1113.00 will negate.
Support: 1115.00 – 1108.00 – 1100.00
Resistance: 1125.00 – 1135.00 – 1142.00
Direction: Bullish correction (North)
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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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