Monday’s Technical Analysis For: Spot Gold (GLD)
$GLD
Spot gold closed higher Friday.
The high range close set the stage for a steady to higher open Monday.
Stochastics and the RSI are Neutral to Bullish indicating that sideways to higher prices are possible near term.
If Spot Gold extends last week’s rally, the 38% Fibo retracement mark of this year’s decline crossing is the next Northside target.
Closes below the 10-Day MA crossing will confirm that a short term top has 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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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.
Have a terrific week.
HeffX-LTN
Paul Ebeling
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