Modi or the Indian wedding season can’t lift Gold higher…

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Neither Modi nor the Indian wedding season can lift gold higher, according to Gary Tanashian, renowned market analyst. At this juncture, US dollar is over bought but bullish but precious metals and commodities are oversold by bearish.Gary Tanashian also took exception to popular view that China demand or uptrend in US stocks is going to push up prices.

“Gold is going to go up (at least in relation to most assets) when confidence in policy making starts to wane… period. I am going to keep this simple monthly chart on radar going forward because it has long-since broken the Triangle and it is a gauge on the macro.”

Technical analysis indicates that if silver begins to lead gold and there is a bounce in the sector along with commodities it would be a counter-trend play. “Further, if you hear the usual suspects coming out with Indian weddings, China demand or worse, the end of the world talk about the US stock market, be very careful unless gold is above 1400 at that time.

Gold charts are indicative of bearish trend until there is a decisive move above 1300 or 1400. At India’s Multi Commodity Exchange (MCX),Gold for December delivery has risen 0.70% to Rs 26924 after settling down -0.27% at 26737 on Wednesday snapping a two-day gain, with investors awaiting minutes of the U.S. Federal Reserve September monetary policy meeting later yesterday, while anticipating cues as to when the central bank will likely hike rates.

The minutes of the Sept. 16-17 meeting of US Federal Reserv released on Wednesday expressed concern the rising dollar could slow a needed rebound in inflation, and also highlighted economic turmoil in Europe and Asia. The minutes prompted investors to bet that the Fed is in no rush to tighten after years of monetary stimulus. The U.S. dollar, which has risen in the last 12 weeks, hit a two-week low, boosting gold’s appeal. Technically market is getting support at 26629 and below same could see a test of 26522 level, And resistance is now likely to be seen at 26919, a move above could see prices testing 27102,

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