3 Jan 2014
Gold capped post Asia demand?
FXstreet.com (Guatemala) - Gold has tailed away from its recent highs at $1,230.84 spot when the yellow metal jumped on Asian demand. With India easing some of the import restrictions this is boosting the prospects for investment in bullion and the manufacturing of jewellery.
After the Reserve Bank of India easing some of the controls on imports on 31st December, the spot price is now actually beginning to test the downside again and supporting levels, printing a recent low of $1,222.23 ahead of the psychological key level of $1,222.00. However, there could be some interest from the bulls to buy on dips around the figure but failure here opens up $1,205.00 again from where the price rallied from. 2014 is here and markets can have a very short term memory, but with 2013 only just behind us, we are reminded that gold had dropped close to 30% in the year and after the rally in prices since year 2000. Asia seems, once again, to be the metals prop for the first quarter of the new year, just as it was in 2013 with the majority of demand also coming from China and India.
US data
Meanwhile, US data in the manufacturing sector has kicked off to a good start and this will also offer encouragement for a decent payrolls number next week. The Fed is widely expected to continue with its tapering programme at forthcoming FOMC meetings. The yellow metal and the dollar will be in the limelight as we proceed into those discussions.
After the Reserve Bank of India easing some of the controls on imports on 31st December, the spot price is now actually beginning to test the downside again and supporting levels, printing a recent low of $1,222.23 ahead of the psychological key level of $1,222.00. However, there could be some interest from the bulls to buy on dips around the figure but failure here opens up $1,205.00 again from where the price rallied from. 2014 is here and markets can have a very short term memory, but with 2013 only just behind us, we are reminded that gold had dropped close to 30% in the year and after the rally in prices since year 2000. Asia seems, once again, to be the metals prop for the first quarter of the new year, just as it was in 2013 with the majority of demand also coming from China and India.
US data
Meanwhile, US data in the manufacturing sector has kicked off to a good start and this will also offer encouragement for a decent payrolls number next week. The Fed is widely expected to continue with its tapering programme at forthcoming FOMC meetings. The yellow metal and the dollar will be in the limelight as we proceed into those discussions.