Research library

On November 2, 2016 the gold price broke above US$1,300/oz for the first time since early October, as the surprise announcement last Friday October 28th by the FBI relating to Clinton’s email probe, injected a new wave of uncertainty into the presidential election.

Following a remarkable performance year-to-date, the gold price fell by over 3% on 4 October, taking it below US$1,300/oz for the first time since the Brexit announcement in June 2016.

The gold price breached US$1,360/oz for a second time in 2016, as investors are starting to lose confidence in the effectiveness of unconventional monetary policies.

The gold price surged as the UK surprised the world by voting to Leave the EU. We expect gold inflows to accelerate as geopolitical and market uncertainty rises.

The gold price staged a spectacular rally in the first quarter of this year, rising by 17% in US dollar terms. This was its best performance in almost three decades, significantly outperforming other major stock, bond and commodity indices.

We have entered a new and unprecedented phase in monetary policy. Central banks in Europe and Japan have now implemented Negative Interest Rate Policies (NIRP) to counteract deflationary pressures and, in some cases, currency appreciation.

India has a rich tradition of gold consumption and production. Cherished as both an adornment and an investment, Indian households own circa 22,000 tonnes of gold and around 600 tonnes of gold is used in jewellery production each year.

Our report, Turkey: gold in action, explores the role gold plays across the entire value chain, and assesses gold’s economic contribution to Turkey.   

India has an ambivalent relationship with gold. For consumers, gold is a prized asset, cherished as both an adornment and an investment. For the government, gold is a major contributor to the current account deficit, a challenge that needs to be addressed.