India Gold Imports To Rise 5% To Over 900 Tonnes In 2013
Thursday, 18 July 2013
Gold remains in backwardation signifying a very tight physical market and premiums in China remain high at nearly $30 per ounce with gold trading at $1,308.27/oz on the Shanghai Gold Exchange (SGE) this morning.
This would ordinarily would lead to a rally but the COMEX paper players remain dominant for the moment.
Gold briefly spiked over $1,300/oz yesterday after Bernanke said the Fed’s monetary policy isn’t on a “preset course” & starts of new U.S. homes unexpectedly fell sharply leading to renewed concerns about the U.S. housing market.
However, gold was capped at the $1,300/oz level where aggressive selling was seen on the COMEX and then gold fell from $1,297/oz to $1,278/oz quite swiftly. Analysts were confused as to the reason for the falls and they came despite a lack of market catalyst.
Despite much negative comment after the recent sharp decline in gold imports into India, India is set to see higher gold imports in 2013 than in 2012.
India’s gold imports are set to fall in the second half as the government curbs shipments in a misguided attempt to prevent a further devaluation of the rupee.
However, if current trends continue, India is set to see full year imports rise from 860 tons in 2012 to 902 tons in 2013 or a gain of nearly 5%.