• 1 hour Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 3 hours Libya’s NOC Restarts Oil Fields
  • 5 hours US Orion To Develop Gas Field In Iraq
  • 3 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 3 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 3 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 3 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 3 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 3 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 4 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 4 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 4 days Kinder Morgan Delays Trans Mountain Launch Again
  • 4 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 5 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 5 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 5 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 5 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 6 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 6 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 6 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 6 days Nigeria Among Worst Performers In Electricity Supply
  • 6 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 7 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
  • 7 days China Unlikely To Maintain Record Oil Product Exports
  • 7 days Australia Solar Power Additions Hit Record In 2017
  • 7 days Morocco Prepares $4.6B Gas Project Tender
Alt Text

Will Ecuador’s Mining Sector Return To Its Golden Days?

Despite the recent political problems…

Alt Text

Aramco’s “Acquisition Hit List”

As Saudi Arabia prepares for…

Gold Prices Could Spike As India Resumes Imports

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:




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