Gold Movement
Gold prices traded lower by 0.21% against the USD in the 24 hour period ending 23:00GMT, at 1161.00 per ounce, on the back of a stronger US Dollar. Meanwhile, the SPDR Gold Trust reported that its gold holdings dropped for the 7th consecutive day to 724.46 tons, marking its longest run of decline since June 2013.
The World Gold Council indicated that demand for the yellow metal on a global level slumped to the lowest in almost five years in the third quarter as bar and coin buying declined and jewellery purchases slowed. The WGD further reported that gold imports by India, the second largest consumer of gold rose more than doubled in the third quarter as a fall in prices spurred jewellery demand during festivals.
In the Asian session, at GMT0400, the pair is trading at 1161.40, with the gold trading marginally higher from yesterday’s close.
The pair is expected to find support at 1154.86, and a fall through could take it to the next support level of 1148.33. The pair is expected to find its first resistance at 1168.66, and a rise through could take it to the next resistance level of 1175.93.
The yellow metal is showing convergence with its 20 Hr and 50 Hr moving averages.
