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Gold Sales: Here’s Why They’re Down in India

Posted On June 6, 2018 9:34 am
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Gold Sales: Here’s Why They’re Down in India

Market watchers know gold is looking for a foothold in the current environment. For simplicity we’ll describe it as “investors looking for big returns from equity markets”, meaning stock markets keep rising, darn them. What has this meant for gold sales? 

Well, investors throw more money at the things that are rising, and they get that money by selling safe haven assets like gold. Usually two things provide support in times like this: demand for physical gold from jewelry and manufacturing, or unexpected geopolitical instabilities (code word for “big unexpected events”).  News out of India is that gold isn’t finding much help on the demand side there. May gold imports are reportedly down to 77.6 tonnes, from 126 tonnes last year.

Ouch. So we’ll have to look elsewhere for promising signs, like maybe the new market in China? You can read more about current Indian gold demand in today’s featured article.  

Will gold prices recover soon, or will they stay flat as a pancake around 1300?  Or – perish the thought – will they drop down into the mid-1200s? Let us know what you think in the comments below.

 Related: This Singapore Report Shows the Future of Gold – Here’s What You Need to Know. 

Originally posted at Mike Hammer – The Gold Enthusiast

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