China and India are the world’s biggest buyers of gold. But recent events may affect their appetite for futures purchases.
In China, a report released last week shows that this year China increased domestic gold production and decreased GOLD purchases on the London metal market.
In Indian, new import duties are to be applied to gold. Bullion traders and jewelers are complaining, but their protests ended last week and the new duties will not be modified.
As a result both countries may slow their GOLD purchases in the future and this may affect the aging gold Bull.
Technical Analysis
GLD ETF, week ending 120413
Last week GLD (the gold ETF) bounced up from the long-term uptrend line, and stopped its advance at its short-term downtrend line (blue).
This week it is likely for GLD to move back down toward the long-term uptrend line area again if it fails to push above last week’s high 163.20 level.
A break below 156.58 could lead GL D to fill three unfilled gaps (155.92, 151.99 and 150.34) lurking below the current price.
But by holding solid above 160, there is a chance for the price to move back up to 166.79 – if GLD can manage to breakout from the 163.20 level.
