• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 1 hour Here's your favourite girl, Tom!
  • 6 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 6 hours Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
  • 7 hours Australian Hydroelectric Plant Cost Overruns
  • 4 hours China's Blueprint For Global Power
  • 2 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 min Nigeria Demands $62B from Oil Majors
  • 20 hours Brexit agreement
  • 4 hours IMO 2020:
  • 24 mins Canada Election Deadlock?
  • 7 hours Ford Planning Huge North American Charging Network
  • 23 hours The Problem Is The Economy, Not The Climate
  • 21 hours 5 Tweets That Change The World?
  • 20 hours Bloomberg: shale slowing. Third wave of shale coming.
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Gold Prices Could Spike As India Resumes Imports

For nearly six weeks, the global gold market has been missing its largest buyer. With gold purchases across the nation of India being paralyzed by a strike from national jewellers’ associations.

But yesterday, local reports suggest that a return may now be at hand.

India’s papers reported that many gold sellers reopened their doors on Monday. With as many as half of jewellery stores now back in action across the country.

That comes after jewellers appear to have been waited out by the government — which has refused to back down on a proposed 1% sales tax on gold jewellery. With reports recently suggesting that several gold-sellers had committed suicide over the past week, after the strike cut into their business and profits. Related: Oil Up As Bullish Sentiment Returns To Markets

Spokespeople for a number of jewellery associations confirmed that most sellers are now going back to work. With the groups saying they had assurances that the government would treat jewellers “fairly” in assessing the new sales tax.

In fact, a number of unions had agreed to return to work as far back as March 19. But the decision had limited effect on the ground, with numerous regional jewellers’ groups deciding to continue strike action. Related: The Halliburton-Baker Hughes Merger is Falling Apart. What Happens Next?

But it now appears that this week’s resolution will have wide-reaching effect. With sources in Mumbai telling papers they expect “nearly all jewellery shops” will be open by the end of this week.

This is obviously great news for the global gold sector. With a pick-up in Indian demand likely to lend solid support to imports and prices. Related: Struggle For Libya’s Oil Wealth Reaches Climax

It’s also notable that India is still in the midst of its wedding season — when gold demand typically runs high. And with gold-sellers now returning to work, buyers may be quick to catch up on securing supply that’s been tough to get over the last month and a half.

Watch for an upward push in the gold price over the coming weeks, if confirmation emerges that India’s gold industry is indeed open again for business.

Here’s to the return of the king

By Dave Forest for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Sriram on April 13 2016 said:
    Experts say :Recent move by Govt to levy 1% excise duty is to keep black money & hawala transactions at check. Most jewellers don't pay taxes or write bills (invoices), hv parallel bills to evade tax, despite having collected from end user.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play