$GLD

Gold extended its drive above the 1170.03 mark Wednesday, more Bullishness seen in here.

Gold must continue to trade and hold above its broken Resistance turned Support at 1170.03 to create space for more Northside action.

On the Southside

Support comes in at the 1165.00 mark where a break targets 1150.00. A cut through there shows the way to 1130.00, then to 1115.00.

The precious Yellow metal’s daily RSI is Bullish and pointing North.

Key Resistance stands at 1200.00, the psych mark. where a break targets 1215.00, then 1230.00, and next towards 1245.00 level.

The bias for Gold is to the Northside above Key support at 1170.03.

Position: Long

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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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