Global gold jewelry demand for the first quarter of 2015 declined 3% to 600.8 tons, primarily due to large swings in demand in regions throughout the world, but particularly in the world’s two largest gold jewelry markets: China and India.
Alternatively the central banks and other official institutions continued their buying momentum. The primary driver of this accumulation of gold reserves continues to be diversification. Many central banks remain exposed to a small number of key reserve currencies and look to gold as a hedge against volatile currency movements
Gold was on the rise again today building on yesterday’s gains as the dollar continues to weaken and a Federal Reserve interest rate hike in June was made all the less likely.
The precious metal rose 3.39% since the beginning of May and is in potential phase change from recovery to accumulation. On yesterday session Gold rallied, breaking above the 200 day moving average and closed in the green near the high of the day on a narrow range day. The stochastic is showing an overbought market but even with the commodity well into overbought territory, we should not fight the strong upward trend.
Expecting an upward move to a daily resistance at 1,238 on a break above previous day high at 1,227 (scenario 1).