• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 6 hours OPEC will consider all options. What options do they have ?
  • 35 mins Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 3 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 9 hours What to tell my students
  • 2 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 6 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 14 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 7 hours China Threatens to Withhold Rare Earth Metals
  • 9 hours With Global Warming Greenland is Prime Real Estate
  • 1 day Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 22 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 21 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 18 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
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…

Dave Forest

Dave Forest

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

More Info

Premium Content

This Year's Most Important Gold News

I know I've used this headline before. I'm hoping that last time was in 2013.

But there's little doubt that the developments that emerged yesterday are key to the future of bullion prices. Coming in one of the most critical gold-consuming centers on Earth.

India.

The big news there is an announced easing of gold import restrictions. Which will broaden the range of entities allowed to bring bullion into the country for domestic consumption.

The Reserve Bank of India said it will now allow a range of private trading houses to start importing gold. Since mid-2013, such groups had been banned from facilitating imports--with such shipments being restricted to a group of select banks.

The new rules will reportedly be effective immediately.

These trading groups will still be subject to the so-called "20:80 scheme". Another measure introduced to curb gold imports--where 20% of imported gold volumes must be dedicated to re-export.

But despite the curbs still in place, this week's changes are a major step forward. Signalling that Indian policymakers feel the country's fiscal problems are behind them. And thus gold imports can once again start to be normalized, without endangering the current account deficit or the value of the rupee.

The numbers bear that sentiment out. India's current account balance is estimated to have fallen 65% in the year ended March 31--to around $32 billion, down from over $88 billion in the previous year.

The rupee has also been strengthening. Up 15% since August 2013.

Given all of these positives, it appears we may see further opening of the Indian gold market ahead. With this week's changes being the first step in returning the nation's bullion sector to normal.

That would be a huge boost for global gold buying--and prices. The last few quarters have seen India's bullion imports down by hundreds of tonnes as compared to previous years. Should this demand return to the market, it will almost certainly have a marked effect.

Here's to getting back to normal,

By Dave Forest




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




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