High demand for gold in China 2013-12-09

China is one of the world's largest producers of the yellow metal, but not a single bar leaves the country. It mainly relies on imports. October was China's second highest month of gold, according to HK customs data. In 2011 and 2012 combined China imported more gold than in 2013. Year to date China's gross gold imports now amounted to just over 1260 tons mainly through HK. India raised import tax to control CAD which crack down the gold imports. In the last 6 months the Indian govt apply 80: 20 rule. This rule orders that 20% of all gold imported must be exported before further imports can be made. Today Indian equity market NIFTY will go to cross life time high. Beyond China and India robust growth in the jewellery sector was also seen in significantly across South East Asia and Turkey. When it comes to important news and events which effects the price of yellow metal, Us nonfarm payroll stood first. On Friday, US nonfarm pay rolls better than expected numbers printed on the street produce more optimism on economy. We expect US economy bottomed out and green shoots visible. Gold tumbles and rebounds from lower levels after the data printed on Friday. From last couple of trading sessions we could see a sharp rebound from lower levels around $1,215-1,211. But gold was unable to sustain on higher levels around 1,255-1,250. Currently, gold is trading at $1,228 in Asian's trading session. It is trading below the red line (21EMA, close). In the hourly charts, it gives a clear picture of expanding lower levels. TECH VIEW- DAILY CHART RESISTANCE - 1,250-1,255, ABOVE THAT 1,264,1,275. CLOSE ABOVE 1,264 COULD LEAD A BIT PULL BACK TOWARDS 1,275 1,295. SUPPORTS - 1,210, BELOW THAT 1,207, 1,195, 1,180, 1,178, 1,150. CLOSE BELOW 1,150 COULD LEAD ALL THE WAT TO STRONG SUPPORT ZONES AT 1,070-1,040 Intra view (hourly chart) - Support 1,217, 1,210 Resistance 1,227, 1,232, 1,236, 1,238, 1,245, 1,255.