Mukesh Kumar

Senior Analyst, India World Gold Council

Gold demand in India continues its downward trajectory in September

  • Indian gold imports reached just 26.3t in September 2019 – 61% lower than the same month last year.
  • The domestic gold price was 2.4% lower in September compared to August, but 18.7% higher y-t-d.
  • With weak physical demand, the discount in the local gold market reached a peak of US$55/oz in September, but narrowed to US$29.5/oz by the end of the month.
  • Monsoon levels in 2019 are the highest for 25 years; Kharif sowing almost flat y-o-y.

Posted 4 years 2 months ago

Ray Jia

Senior Analyst, China World Gold Council

Chinese gold ETFs’ AUM reached all-time high in September while physical demand remains soft

  • The Shanghai Gold Benchmark price saw a modest decline in September, with the local gold premium falling sharply due to the stabilising currency and increasing gold imports.
  • Led by the declining gold price and the soft physical demand, both Au(T+D) and Au9999’s trading volume dropped last month while loadouts from the Shanghai Gold Exchange (SGE) levelled off.
  • After hitting the lowest level since 2017 in July, gold imports to China rebounded in August.
  • The People’s Bank of China (PBoC) added another 6t to its gold reserves in September. After ten consecutive purchases, the PBoC now holds 1,948t gold in its reserves.

Posted 4 years 2 months ago

Mukesh Kumar

Senior Analyst, India World Gold Council

Gold rally sours Indian demand in August

  • The domestic gold price was 10.3% higher in August compared to July, outpacing the LBMA gold price which rose by 7%
  • Indian gold imports reached just 28.2t in August 2019 – 70% lower than the same month last year and lowest level since January 2018
  • With elevated domestic gold prices and a higher custom duty, the discount in the local gold market widened out as far as US$55/oz in August
  • Monsoon rainfall is 5% above Long Period Average (LPA) with Kharif sowing just 0.2% lower than last year; normal monsoon and healthy sowing bodes well for rural gold demand in Q4 2019.

Posted 4 years 3 months ago

Mukesh Kumar

Senior Analyst, India 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 

Posted 4 years 5 months ago