Monday’s Technical Analysis: Spot Gold
Spot Gold closed lower Friday.
The mid-range close set the stage for a steady to higher opening Monday.
Stochastics and the RSI are overbought but are still Neutral to Bullish indicating that sideways to higher prices are possible near term.
If Spot Gold extends the rally off of the November lows, August’s high crossing is the next Northside target.
Closes above the 20-Day MA crossing will confirm that a short term low is in.
Overall, Spot Gold is biased to the Northside, though there room to trade down to 1,280 if it does not break 1,315 in here.
Note: India, announced it has eased controls on imports of the precious Yellow metal after its current account deficit narrowed sharply.
“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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.
Have a terrific week.
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