Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

India’s Gold Demand Is Soaring Again

Friday, March 3, 2017 5:46
% of readers think this story is Fact. Add your two cents.

Headline: Bitcoin & Blockchain Searches Exceed Trump! Blockchain Stocks Are Next!

From Dave Forest: The biggest story in gold the past year has been India. With the world’s former largest gold importer seeing a 21 percent fall in shipments during 2016, to just 676 tonnes.

But news this week suggests India’s gold demand is coming back to life — for the first time in nearly a year.

Preliminary statistics on India’s February gold imports showed a major lift. With gold experts GFMS estimating that the country brought in 50 tonnes of bullion during the month — up 82% from the 27.4 tonnes Indian buyers imported during February 2016.

That’s a rare uptick for India’s imports. Which have generally been registering lows over the past several months.

The return of India to the gold market makes sense. Given that many of the factors weighing on demand in 2016 were temporary — including a jewellers strike early in the year, and a cash crunch triggered by demonetization of small bank notes in November.

The demonetization effect had been weighing on India’s gold markets even into January. But the strong February import stats show that the worst may now be over, with Indian consumers making their way back to the market.

The most critical point is that this increased buying is happening even as gold prices are holding relatively high — with an ounce of gold currently selling for near $1,250, not far off the $1,350 peak we saw during the past year.

When gold ran from $1,050 in early 2016 up those heights, reports suggested many Indian buyers were holding off in hopes of lower rates. But this week’s news shows those holdouts may now have given up the wait, and decided to accept today’s prices as a new normal.

The February buying still isn’t a barnburner — with the 50 tonnes imports during the month working out to just 600 tonnes annualized. But the year-on-year increase is encouraging. Watch to see if the March numbers continue the trend and come in higher than a year ago.

Here’s to a good start.

The SPDR Gold Trust ETF (NYSE:GLD) fell $0.74 (-0.63%) in premarket trading Friday. Year-to-date, GLD has gained 7.27%, versus a 6.59% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #6 of 33 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of OilPrice.com.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)



Source: http://etfdailynews.com/2017/03/03/indias-gold-demand-is-soaring-again/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.