Wednesday’s Technical Analysts: Spot Gold
Spot Gold posted an inside range day with a lower close Tuesday.
The low range close set the stage for a steady open Wednesday.
Stochastics and the RSI are Neutral to Bullish indicating that sideways to higher prices are possible near term.
If Spot Gold renews the rally off of the Dec lows, the 50% Fibo retracement mark of the August December decline crossing is the next Northside target.
If Spot Gold renews the decline off last Monday’s high, the reaction low crossing is the next Southside target.
Support: 1263.45, 1260.90, 1252.65, 1248.00, 1244.50
Resistance: 1274.55, 1280.30, 1284.80, 1288.55, 1294.65
Recommendation: positive expectations above 1263.45, risk-limit below 1250.00.
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“Restrictions placed on import of Gold… stand withdrawn with immediate effect,” India’s central bank said in a statement on Saturday, 29 November.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.
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