• 3 minutes Top 3 Skills for Traders
  • 5 minutes Oil at $40
  • 8 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 2 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 5 mins Ecoside
  • 21 hours Guaido and the Conoco Award
  • 22 hours Welcome To The Club: Apple In Talks With Potential Suppliers Of Sensors For Self-Driving Cars
  • 12 hours Is Canada hosed?
  • 23 hours Opening up the waters off the coast of Florida to oil and gas drilling
  • 22 hours Trump Torpedos Oil Pipeline Haters
  • 19 hours The Number Increases: Swiss To Support Belt And Road Push During President's China Trip
  • 1 day The Key Players In Libya's "Potential" Civil War
  • 1 day Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 1 day Tax Credits for Energy Storage
  • 18 hours Negative Gas Prices in the Permian
Alt Text

Is This The Biggest Gold Deposit Ever Found In China?

China’s second biggest miner has…

Alt Text

The Worst Mining Nation On The Planet?

Falling production, financial hardships, strikes…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

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

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News