Gold price edges higher, strong Indian festive demand supports

Gold edged higher in London on the morning of Wednesday, October 26, supported by growing confidence in stronger physical demand, market participants said.

The spot gold price was recently quoted at $1,275.25/1,275.65 per oz, up $1.30 on the previous close. Trade has ranged from $1,273.15 to $1,276.55 so far.

“Continued interest from ETFs and Indian buying is providing solid physical support, while the recent reduction in CFTC long positioning should be conducive to a stable push higher. Initial support sits at the 200 DMA ($1,271), while top-side targets extend to $1,280,” MKS said.

Physical demand has improved in India for festival season – Dhanteras and Diwali will be celebrated at the end of the month – when buying and gifting gold is considered auspicious. Also, a one-month wedding season starts there in November.

Gold investors are brushing off the negative impact on bullion of a firmer dollar, HSBC analyst James Steel noted. The dollar index was recently at a strong at 98.54.

In the other precious metals, spot silver was unchanged at $17.810/17.830 per oz. Platinum at $968/973 was up $10 and palladium climbed $7 to $636/642

 

(Editing by Mark Shaw)

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