Gold Movement
Gold prices traded lower by 0.53% against the USD in the 24 hour period ending 23:00GMT, at 1320.40 per ounce, following inspiring jobs data from the US as it diminished the safe haven appeal of the yellow metal.
Meanwhile, in a key development, the Reserve Bank of India, the second-largest consumer of gold has decided to plan for a new measure wherein it would exchange a portion of its gold reserves to gold bars that meet international standards. This method would be designed in such a way that it would automatically improve the nation’s management of its reserves. As part of this new arrangement, following the government approval, the central bank would release few portions of impure gold stocks onto the local market, thereby assisting to ease supply shortages arising mainly from the import curbs.
Separately, concerns over weak physical demand from the top consumer, China, continued as a leading consultant projected that gold imports in the nation would go down by almost 400 tonnes this year as the government has planned for few steps wherein it tightens controls on gold financing deals and as a result the domestic demand would fall.
In the Asian session, at GMT0300, Gold is trading at 1320.60, marginally higher from yesterday’s close.
Gold is expected to find support at 1311.87, and a fall through could take it to the next support level of 1303.13. Gold is expected to find its first resistance at 1327.47, and a rise through could take it to the next resistance level of 1334.33.
The yellow metal is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
