Gold trades near day’s low, India to scrap 80:20 gold import rule

November 29, 2014 Posted by admin

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Gold trades near days low, India to scrap 80:20 gold import rule

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FXStreet (Mumbai) – Gold prices fell to the day’s low levels ahead of the US opening while rumors are doing the rounds that India scrapped an 80:20 import rule.

Gold is now trading 1.48% lower at USD 1179.80/Oz levels. The prices extended the decline As the European equities recovered losses to trade on a flat note. The US Dollar Index too, has erased gains to trade largely unchanged at 88.08 levels.

Meanwhile, Indian television channels have been reporting for a couple of hours that the country has decided to scrap the rule that required trading companies to export 20 percent of gold imported, known as 80:20 scheme. The curb was imposed last year to bring down gold imports, which had pushed the current account deficit to a record high in the fiscal year 2012-13.

However, an official statement on the matter is yet to be released. Thus, international Gold prices have failed to react so far to the news. Gold imports from India, the largest consumer of Gold as per the latest World Gold Council (WGC) data, are likely to pick-up in the days ahead as the marriage season kicks-off.

Gold Technical Levels

Gold has an immediate support located at 1174.70 (Nov. 19 low), under which prices may fall to 1160.50 (Oct. 31 low). Meanwhile, resistance is seen at 1183.50 (Oct. 6 low) and 1188.10 levels.

Article source: http://www.fxstreet.com/news/forex-news/article.aspx?storyid=bac9fbd4-f22c-4f96-8f61-0aae64b98605

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