Neutral Gold In Here, Trendless With No Reliable Signals
Gold has declined again, trading below 1100.00 the psych mark after failing to stabilize above the 20-Day SMA colored in Green on the daily.
The strength of the Bull trend declined according to ADX readings, but the Bulls are still in a good place.
Trading between 1105.00 and 1086.00 makes the market trendless due to no reliable signals.
A break below 1086.00 will bring the Bearish picture back in focus, marking below 1080.00 will damage the Bullish tendencies.
So, will be Neutral and will wait for signals to enter the Gold market.
Support: 1086.00 – 1080.00 – 1075.00
Resistance: 1105.00-1110.00-1117.00
Direction: Neutral (Stand Aside)
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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 started 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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