|Thursday’s Technical Analysis For: Gold
Gold prices traded higher by 0.20% Vs the USD in the 24 hour period ending 23:00 GMT, at 1125.20 oz.
In the Asian session, at GMT0300, Gold is trading at 1129.40 or 0.37% higher from Thursday’s close.
Gold is expected see 1st support at 1120.73, a break there could push it to next support at 1112.06.
Gold is expected to see 1st resistance at 1134.33, a break there could drive it to next resistance at 1139.26.
The precious Yellow metal is trading above its 20 Hr and 50 Hr MAs.
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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.