Wednesday’s Market Commentary On Gold (GLD)
$GLD
Gold See-Sawed between small gains and losses Tuesday, as participants digested a batch of weaker than expected US economic data while focusing on the start of the FOMC’s 2-day monetary policy meeting.
Gold finished softer as support from diminished speculations of Fed funds rate hike was offset by disappointing US data.
The US Commerce Department said total durable goods orders decreased by 1.2% last month, matching forecasts. Orders for durable goods in August were revised to a drop of 3.0% from a previously reported decline of 2.3%.
Core durable goods orders, which exclude volatile transportation items, fell 0.4% in September, compared to expectations for an increase of 0.1%.
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Gold Spot is trading +0.33% in Asia as I write:
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USD/t oz. | 1,170.77 | +3.89 | +0.33% |
| HeffX-LTN Analysis for GLD: | Overall | Short | Intermediate | Long |
| Bullish (0.29) | Bullish (0.26) | Bullish (0.31) | Bullish (0.31) |
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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
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