Tuesday’s Technical Analysis: Spot Gold
Spot God closed higher Monday.
The mid range close set the stage for a steady open Tuesday on COMEX.
Stochastics and the RSI are turning Neutral to Bullish indicating that sideways to higher prices are possible near term.
Closes above the 10-Day MA crossing dampens the near term Bearish outlook.
If Spot Gold extends last week’s decliner, June’s low crossing is the next Southside target.
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India, the world’s 2nd-biggest Gold buyer after China, imposed the import restrictions last year to avert atrade 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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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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