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.
- On 6th July, India’s gold import duty increased from 10% to 12.5% as part of a revenue-raising budget
- We believe it will have a negligible long-term effect on gold demand
- We think it may be a temporary measure: when the government’s books are in better shape we may see some of these tax increases rolled back
- The market will be supported by other government initiatives, including the structural reforms such as the India Gold Spot Exchange and plans to boost rural incomes
Having risen over 3% in May, the loco-China gold prices continued to soar in June. Au(T+D), the most liquid and margin-traded gold contract at Shanghai Gold Exchange, rose 8.71%, the best monthly performance in 3 years.
#Gold: currently trading around $1393/oz in European morning trading, failing to hold the $1400/oz level yesterday following renewed US dollar strength and a slight recovery in real yields. https://t.co/rIrc8tDXz6
In the age of sustainability, having a socially and environmentally responsible business model is no longer a luxury. Consumers and investors, increasingly conscious of the impact commercial activities can have, are exerting pressure on businesses to ensure their practices are as ethical and responsible as possible.
Gold: Yesterday, India’s Ministry of Commerce released May trade data. India’s gold imports in May 2019 was 115.8 tonnes compared with 82.8 tonnes in May 2018.
This is this is the largest one-month import since August 2015. https://t.co/gPXIYpkrQ4
The Islamic finance market is now valued at more than US$2tn and growing at a rapid rate. The association between Islamic finance and gold dates back many centuries but, until recently, Islamic savers were unclear whether they could invest in gold products. In 2016, the AAOIFI Shari’ah Standard on Gold, developed in collaboration with the World Gold Council, provided the clarity that investors needed.