Gold prices fell for contributing to depreciate the decline in oil prices and prompting fears that inflation will remain low, limiting the appeal of gold metal as a hedge. However, the price of gold still managed to move up during three consecutive sessions and is now close to seven-week highs as the weakening dollar and global equities prompted investors to seek safe haven in gold investment.
Physical Gold Demand Rises
The Federal Reserve will have a meeting next week when policy makers continue to argue about when the right time to raise interest rates in the past eight years.
The movement of global stock hit because of the political turmoil in Greece and after China’s stock market posted its worst day movement within five years.
Of physical gold market, strong investor demand has raised the American Eagle coin sales rose to a record for the second consecutive year, reports the US Mint.
Indian Gold Market
The market also observed the development of a major gold consumer regulations in India, which dalat import policy changes. In a report saying that Indian households can spend 8% of the daily consumption of gold jewelery, which is only slightly behind the cost of treatment and education, according to a joint report by industry body FICCI and the World Gold Council.
So that the current account deficit continues to widen India sharply to $ 10100000000, or 2.1% of GDP, in the second quarter due to increasing imports of gold.
India is the second largest gold consumer, after China, with an annual consumption of 850-900 tons. The report said that there should be an institution that takes care khususu gold to manage imports that can boost exports and facilitate the development of the infrastructure needed to ensure that the function of the Indian gold market remains strong
On Wednesday movement, gold trading opened in the range of 1230.84 per troy ounce. Gold prices rose slightly to move upward toward the highest daily price in the range of USD 1238.11 per troy ounce. Finally, the price of gold was in the range of USD 1226.05 per troy ounce. The movement of gold getting losses against the dollar as much as USD 4.79.
In general, the movement of gold in the 4-hourly chart looks still in bullish condition. Gold prices seen above the simple moving average indicator 20 and 50 which is a support area for the movement of gold. Indicator of relative strength index (RSI 14) at the level of 63 to give an indication of the potential price to be in a bearish condition. Likewise, the momentum indicator 14 provides an indication that the price will still move bearish.
The intraday bias, gold price movements on the 4-hourly chart looks continue to rebound phase to move up and the current strong price holds above the psychological support area. If the price of gold, the dollar strengthened against the resistance of USD 1255.20 per troy ounce back will be touched by the movement of the price. Conversely, if the price of gold moves down and support the USD 1225.83 per troy ounce then there is the potential for the gold price will go back deeper correction and move towards support at USD 1207.67 per troy ounce.