Tuesday’s Technical Outlook For: Spot Gold

Tuesday’s Technical Outlook For: Spot Gold

$GLD

Spot Gold closed higher Monday.

The high range close set the stage for a steady open Tuesday.

Stochastics and the RSI are Neutral to Bearish indicating that sideways to lower prices are possible near term.

Closes below the 20-Day MA crossing will dampen the near term Bullish outlook.

If Spot Gold extends this month’s rally, the 25% Fibo retracement mark of the January June decline, crossing is the next Northside target.

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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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

Stay tuned…

HeffX-LTN

Paul Ebeling

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