India’s appetite for gold continues to surge especially after restrictions were lifted on imports. In November imports rose to $5.61bn from $4.18bn prior.
The RBI’s change in import and holding rules in gold has helped put a bid in gold but it’s come under some pressure this month as expectations start to rise that the Fed will be raising rates and may deliver some hawkish comments (or lack of previous dovish language) at the up coming FOMC meeting this week.
Gold has been held up at the old 1240 level which has acted as S&R previously
Gold daily chart 15 12 2014
We’re down at the lows of 1208, -$14 in today’s trading and the pressure is likely to remain on prices as the market goes Fed guessing this week. It’s the last FOMC of the year and the big point everyone is talking about is whether the “considerable period” line will be dropped.
