Gold (GLD) Pressured To The Southside In Here
Gold Bear Pressure Risk Turns To 1104.00/1098.00 Zone
Gold Declining further Wednesday following its Tuesday weakness, further Southside pressure is seen.
Supports at 1104.00/1098.00 zone could present a tough time for the commodity. It requires a convincing break below here to extend further weakness.
On the Southside
Support comes in at 1100.00 where a break will turn attention to the 1090.00 mark. A cut here will open the door for a move lower towards 1075.00. Below here if seen could trigger further Southside pressure targeting the 1055.00 mark.
Gold’s daily RSI is Bearish and pointing lower suggesting weakness.
On the Northside
Resistance stands at 1120.00 where a break targets at 1135.00. A turn above there will expose the 1150.00 mark. A break there will turn attention to 1165.00.
Overall, Gold is biased to the Southside
“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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 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.