Goldhub blog: Posts tagged with "India"
To curb the spread of COVID-19, the global restrictions have impacted the global gold supply chain, from production to refining. These supply-chain disruptions have impacted both bullion and gold dore’ imports into India.
The domestic gold price increased by 4.1% in February m-o-m and 8.4% higher than the end of 2019. The rising gold price and higher volatility in the market lured investors towards gold ETFs.
Gold demand tailed off in second half of December with start of inauspicious period and higher gold price
Wedding and stable domestic gold price at ~Rs 37800/10gm helped demand in first half of December but demand tailed off after 15th December after the beginning of inauspicious period and rising gold price which jumped by 3.7% from mid-December till end of the month.
- Indian gold imports reached just 37.7t in July 2019 – 49% lower than the same month last year
- The domestic gold price was 2.3% higher in July compared to June; 23% higher y-t-d
- The custom duty on gold was unexpectedly raised by 2.5% in the Union Budget on 5th July
- With elevated domestic gold prices and a higher custom duty, the discount in the local gold market reached a peak of US$28/oz in July
- Volatile prices and weak physical demand encouraged healthy gold futures trading on MCX: volumes touched a high of 46.8t in July
We will soon be launching two regular blog posts– monthly updates on India and China by Mukesh and Ray, our analysts in Mumbai and Shanghai. These monthly posts will provide a snapshot of the health of these two global heavyweights, which together account for around half of annual global consumer demand.