Gold Rebounded with Vengeance

Gold prices rebounded with vengeance in Asian session today after both US Senate and House of Representatives voted on Wednesday to end the government shutdown and raise the nation’s borrowing limit. Prices also rebounded as some investors are looking at the price highly attractive for long term investment.

As per Bullion Bulletin research, gold below 100 day moving average of $1329/oz is highly attractive and after the news of US shutdown, gold hit low of $1251/oz in COMEX. So, investors have come forward and  given strong support around $1250-1280/oz level. We believe $1329/oz will act as strong resistance going forwards, while $1251/oz will act as strong support.

Meanwhile, All India Gems and Jewellery Trade Federation have decided to lift the ban on selling of gold coins by jewelers in coming festive season. People buy gold coins and bars during Dhanteras and Diwali and large amount of coins and bars are sold. As per market estimate, usually, 20% of all gold sales come through selling of gold coins and bars by jewelers across the country.

Bullion Bulletin Research