More new information on the world's most important gold market right now: India. Showing that demand continues to stay strong, providing solid support to global prices.
Local press reported this week that India's April gold imports rose substantially. With "trade sources" estimating total imports at 90 tonnes for the month -- up 55% from the 58 tonnes that Indian buyers brought in during April 2014. Related: Saudi Arabia Continues To Turn Screws On U.S. Shale
That follows on a strong import performance in March. Which saw 121.8 tonnes of gold imported here.
All of which suggests that recent measures to relax gold import rules in India are having an effect. Indeed, sources quoted by the press said that removal of restrictions such as the so-called "80:20 rule" on imports has helped lift buying over recent months.
The April figures were also boosted by marriage-season buying in the country. Related: Here Is Why Predictions For Lower Oil Prices Are Wrong
April's 90 tonnes of imports would put India on pace to exceed gold import levels it saw last year. With shipments into the country during 2014 having totaled just 900 tonnes.
All of which is great news for the gold price. With this steady buying having likely played a role in keeping the global gold price stable around $1,200 per ounce recently. Related: Alberta Election Result Changes Little For Oil Industry
Of course, there are risks to the gold market here. Most notably recent plans by India's government to cut imports by offering deposit schemes for private citizens' gold.
But for the time being, India is back as a dominant player in this space. Keep a close eye on all developments around this critical import market for bullion.
Here's to an Indian summer,
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