Gold Best Buy level 1221 Resistance @ 1254.70 above 1288.40 upside capped @ 1322 - 1346 - 1362 below 1214.80 likely to test 1195 - 1168
Now @ 1222.40
JAN TO FEB RANGE : 1177.80 - 1308.8
Dec 2014 we have taken support & 1168 & bounced , Hence the current fall to 1221 from 1308.80 can also be considered as gap filling of 1178 to 1308.8 run up
The other fundamental factors are, the Central bank buying and selling can always have a significant influence on gold prices.
As reported on Jan 27 (Reuters) - Russia extended its buying spree of gold to a ninth straight month,
Gold bounce off from 1178 December lows can possibly be due to support from central bank purchases. Russia added 20.73 tonnes to the world's fifth-biggest gold holdings, bringing its total to 1,208.23 tonnes.
Russia's gold-buying spree comes amidst a bearish outlook for its economy, which is expected to slide into recession this year on low oil prices and the fallout from sanctions over Ukraine. To say Russia has overtaken China in the amount of gold held by its central bank.
Meanwhile Ukraine Central banks also have paused in selling its gold holdings
Other buyers included Kazakhstan, Belarus and Malaysia & India in one of our earlier article on the blog dated 2nd Dec 2014
"Swiss Gold Referendum Rejected but The Big News Is That India Is Back! + Technicals = 1234 - 1294 Later 1488 - 1548?? XAUUSD
Adding to that China's trade performance slumped in January, with exports falling 3.3 percent from year-ago levels while imports tumbled 19.9 percent, far worse than analysts had expected and highlighting deepening weakness in the Chinese economy.
In the above linked article we had also talked about China holds the gold price key, If China wants the gold price to turn around
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