gold

Precious metals profited from better than expected Chinese data before India put a cap on Gold and Silver, by doubling import duties with immediate effect. The import tax will be moved to 2% for Gold bars and coins and 6% for Silver Bars. Gold dore with a purity of less than 95% would benefit local refiners by a net difference of 0.5% in taxes from bars. The increase in tax, as it has effect allover India, should not impact demand as a whole, but could have a temporary psychological effect. Thomson Reuters GFMS released their Gold survey, expecting the price to climb above 2000 USD by early next year, driven by investors demand. Reduced scrap supply, as well as Investors and Central Banks are expected to drive demand, countering reduced jewellery demand and rising mine production. GFMS also expects Gold to near the closing stages of its bull market next year. Gold dropped overnight on reduced physical demand, as Indian buyers were said to remain largely absend and Chinese volumes in Shanghai showed reduced activity. Sell stops got triggered on the break of 1650, before support was found around 1644, the 200 day moving average on the 240 minutes chart. Platinum had a great run yesterday, but came under pressure overnight falling 25 USD, as it was torn lower by Gold. There are some moves in ETF land, the SPDR GLD added 1.5 tons to its holdings and the iShares 1.3 tons, while Source funds dropped 1.1 tons. Gold supports should come in around 1644 and 1635 today, while 1670 and higher see a bunch of resistances before the psychological 1700 USD level.