• 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
  • 1 hour Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 8 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 44 mins China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 16 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 7 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 44 mins US to Drown the World in Oil
  • 11 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 5 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 3 hours Iran Is Winning Big In The Middle East
  • 49 mins With Global Warming Greenland is Prime Real Estate
  • 1 hour Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 21 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 20 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 8 hours LA Solar Power/Storage Contract
Alt Text

Did These Mining Giants Just Confirm The Next Gold Frontier?

After Ecuador’s President removed a…

Alt Text

This Key Gold Producer Sees Its Production Slump

Africa’s second gold producer Ghana…

Alt Text

Can Mali Maintain Its Gold Mining Status?

Mali could be about to…

Dave Forest

Dave Forest

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

More Info

Premium Content

Gold Buying Drops Almost 80 Percent In This Key Market

The gold price continues to look perky this week. With a move to near $1,350 per ounce having some analysts suggesting another breakout may be at hand.

And in the world’s biggest gold-consuming nation, those higher prices are still having a big effect on buying.

A new report Monday showed that gold consumers in India are still staying away from the physical market. In fact, they may be avoiding purchases more than ever — with the past month showing one of the biggest declines in buying since the gold price took off this past January.

That study came from gold analysts GFMS. Who estimated that India’s gold imports for July probably dropped a whopping 79.3 percent as compared to the same month in 2015.

The group pegged India’s July gold shipments at just 20 tonnes for the month. Suggesting that demand for this period may have been down by nearly 80 tonnes — a massive fall in overall demand.

This marks the sixth-straight month that India’s gold imports have fallen compared to last year. Showing that the effects of higher prices are far from abated in this key consuming center — in fact, the pinch in physical demand may be getting worse.

GFMS analysts noted that India’s gold sellers are still offering steep discounts in an attempt to attract buyers. With a survey of the market showing that many gold vendors are selling for as much as $100 below spot price. Related: Amid Drastic Reforms, Abu Dhabi Maintains 3.5M Bpd Target

That’s a record level for such discounts. Showing just how strong India’s aversion is to buying at higher prices right now.

At the same time, Reuters also reported that another problem is emerging — increased scrap supply of gold. With officials from local jewelry trade bodies telling the news service higher prices are coaxing a lot of recycled supply out of the woodwork the last two months.

All of which shows that physical demand is decidedly not the driver right now for the global gold price. Paper buying by investors and speculators continues to be the major factor here — which means we could see some big swings, up or down, if sentiment shifts.

Watch the trading — and keep an eye on the data from India, to see when buyers here will capitulate and start restocking.

Here’s to the golden months of summer.

By Dave Forest

More Top Reads From Oilprice.com:

 




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