Gold Focus: Items tagged with "india gold market"
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India’s gold market in February: Strong inflows in gold ETF amid weak consumer demand
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.
Higher prices and custom duty dampened Indian demand in July
- 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
The blueprint for a gold spot exchange in India
On Friday 2nd August, the Blueprint for Gold Spot Exchange in India was released at the India International Gold Convention (IIGC) in Amritsar. The report was produced by the industry steering committee, which is comprised of 27 major stakeholders of the bullion industry – both global and domestic and is chaired by the World Gold Council.
Higher domestic price and monsoon dents Indian gold demand in June
Summary
- Indian gold imports were 62t in June 2019 – up slightly on the same month last year
- The domestic gold price was 6.1% higher in June as compared to end of May
- With higher domestic gold prices, the local discount in the gold market reached $23/oz (1.6% to the international price) by end of June
- Higher and relatively volatile prices encouraged gold futures trading on MCX: volumes touched a high of 28.2t in June
Coming soon: monthly blog posts on India and China
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.