Modi Calls on Indians to Refrain from Buying Gold; Jewellery Stocks Fall

Indian Prime Minister Modi's move to discourage gold purchases could create short-term weakness in global gold demand. GLD's RSI is approaching overbought territory at 61.8, while the MACD has started to fall below the signal line. Following a 3.5% rise in the last 24 hours, weakening technical indicators and the negative perception from the news may trigger profit-taking. However, remaining above SMA20 and SMA50 suggests any decline could be limited.

The news headline indicates that Indian Prime Minister Modi's efforts to discourage gold purchases have led to a decline in jeweler stocks. This development could create expectations of reduced gold demand, potentially putting pressure on GOLD shares. Although the RSI at 58.7 remains in neutral territory, the MACD line is above the signal line, maintaining positive momentum. However, the recent 6.2% gain in the closing price may partially offset the negative impact of the news. While a short-term bearish trend prevails, it may be too early to confirm a strong trend reversal.