Gold Prices Rise As Demand In This No.1 Gold Market Soars
By Dave Forest - Apr 17, 2017, 10:38 AM CDT
Sentiment has turned up in the gold market the last few weeks. And new data from the world’s top consuming center — India — shows there may indeed be cause for optimism amongst bullion buyers.
Data reported in the local press showed that India’s gold imports saw a big jump during the most recent quarter, January to March 2017. With total imports for the period hitting 230 tonnes.
To put that in perspective, consider some numbers from recent quarters — during which India’s gold imports showed some of the weakest figures on record.
During April to October 2016, gold imports totalled just 264 tonnes. Meaning that incoming shipments for that entire seven-month period were barely above the figures for the most recent three months.
That suggests a major surge in gold demand is happening here. In fact, imports for the Jan-Mar 2017 quarter were the strongest for those months since 2013.
The pick-up in buying appears to be related to the Indian government’s recent crackdown on cash. With the government having banned small banknotes effective as of early November.
Since that event, gold imports have jumped to 360 tonnes for the five months from November to March. More than 35% higher than total imports for the preceding seven months.
India’s citizens are reportedly turning to gold as a safe haven amid doubts about paper money. Which bodes well for continued support in this key gold market as 2017 goes on.
How big a lift could that give to global gold prices? If we annualize the figures from the past quarter, India is on pace to import 920 tonnes for this year. Which would represent a massive improvement from the 13-year low imports of 571 tonnes the country saw in 2016.
- Forums
- Commodities
- GOLD
- gold
gold, page-27625
-
- There are more pages in this discussion • 100,809 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GOLD (COMEX) to my watchlist
The Watchlist
MTL
MANTLE MINERALS LIMITED
Nick Poll, Executive Director
Nick Poll
Executive Director
SPONSORED BY The Market Online