Spot Gold Trading Higher In Asia Wednesday
$GLD
Gold prices traded higher by 0.12% Vs the USD in the 24 hr frame ending 23:00 GMT, at 1095.10 oz, ahead of the end of the FOMC meeting where Fed policymakers may give some clues about an interest rate increase in the US later this year or in Y 2016.
Gold holdings in the SPDR Gold Trust (NYSEArca:GLD) were unchanged at 680.15 tonnes, from its prior level of 684.63 tonnes.
In the Asian session, at GMT0300, the pair is trading at 1097.20, or + 0.19% from Tuesday’s close.
The pair is expected to see 1st support at 1092.63, a break there could push it to next at 1088.06.
The pair is expected to see 1st resistance at 1100.23, a break there could drive it to the next resistance at 1103.26.
The precious Yellow metal is trading above its 20 Hr and 50 Hr MA’s.
Direction: Northside bounce
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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 buy Gold 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.
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Paul Ebeling
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