Friday's Technical Analysis: Spot Gold
Spot Gold closed lower Thursday.
The low range close set the stage for a steady to lower opening when Friday's US session opens for trade.
Stochastics and the RSI are Neutral to Bearish indicating that sideways to lower prices are possible near term.
If Spot Gold extends the rally off of its November low, the 38% Fibo retracement mark of the March-October decline crossing is the next Northside target.
If Spot Gold renews Monday's decline, the November low crossing is the next Southside target.
Note: await the US non-farm payrolls this morning in the US, as the price should confirm stabilizing above 1213.05 to move further to the Northside.
Support: 1200.00, 1195.00, 1190.00, 1181.85, 1176.75
Resistance: 1213.05, 1215.75, 1220.00, 1226.60, 1238.25
Recommendation: positive expectations above 1200.00, risk-limit below 1185.00.
Note: India, announced it has eased controls on imports of the precious Yellow metal after its current account deficit narrowed sharply.
India, the world's 2nd-biggest Gold buyer after China, imposed the import restrictions last year to avert a tradedeficit 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"Restrictions placed on import of Gold… stand withdrawn with immediate effect," India's central bank said in a statement on Saturday, 29 November.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.
Stay tuned…
HeffX-LTN
Paul Ebeling
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Paul Ebeling is best known for his work as writer and publisher of "The Red Roadmaster's Technical Report" on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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