Insights: Posts tagged with "monsoon"

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

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