UPDATE ON GOLD (CMP $903)
According to WGC (World Gold Council) statistics, demand for the yellow metal in India has slumped by nearly 50% to 102.1 tonnes in the first quarter of calendar 2008, compared to 202.2 tonnes in the corresponding quarter of 2007. Even during the peak season of December 2008-February 2009, consumers had postponed their purchases because of high prices.
Technical Outlook:- Gold was rising nicely in an up-channel which continued from Mid-November'08 till late March'09. The yellow metal did trade above $1000 for some time but now looks like being distributed near that resistance. The up-channel has also broken down and once support at $880-885 gives away, test of $790-800 looks possible.
India Gold imports fall to "Zero" http://www.bloomberg.com/apps/news?pid=20601091&sid=akXBle8f19ek&refer=india
Wedding season demand weak for Gold http://www.business-standard.com/india/news/wedding-season-gold-demand-to-remain-weak/353643/
Previous post on Gold: http://tanmaygopal.blogspot.com/2009/03/dear-all-gold-is-showing-topping-in.html