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Gold declines after WGC says global demand near 5-year low

FXStreet (Mumbai) - Gold prices took a beating after the World Gold Council (WGC) said today that the global demand for Gold fell to a 5-year low in the third quarter due to a fall in Chinese demand.

Gold traded 0.28% lower at USD 1155.70/Oz levels at the time of writing, compared to the previous session’s close of USD 1159.10. The prices slid today from a high of USD 1167.30 after the data prepared in conjunction with GFMS analysts at Thomson Reuters, showed that total gold demand fell 2% to 929 tonnes in the third quarter.

Meanwhile, the jewellery consumption in the last year’s number one consumer China fell 39% along with a fall of 30% in bar and coin investment. On the other hand, India re-emerged as the world's biggest gold consumer, buying 225.1 tonnes of gold jewellery, coins and bars last quarter, compared to 182.7 tonnes in China.

Earlier today, Gold prices had hit a high of USD 1667.30/Oz after the official data in China revealed a sharp slowdown in the Industrial Production and Fixed asset investment in October. The gains in yellow metal were also capped by the strength in the US Dollar index.

Gold Technical Levels

Gold has an immediate support located at 1153, under which prices can fall to 1146.70 levels. Meanwhile, resistance is seen at 1156.5 and 1167.30 levels.

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