• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 7 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 * Too late now
  • 3 hours 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 23 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 10 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 11 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 6 hours Will Uncle Sam Step Up and Cut Production
  • 3 hours With Global Warming Greenland is Prime Real Estate
  • 3 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 3 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 3 hours Sad . . . Only thing that moves oil price up is an attack on Tankers or Oil Facilities (Staged or real?)
  • 13 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 2 days Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 2 days Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 7 hours Get First Access To The Oilprice App!
  • 16 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Dave Forest

Dave Forest

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

More Info

Premium Content

Gold Demand In This Key Market Just Surged 82%

The biggest story in gold the past year has been India. With the world’s former largest gold importer seeing a 21 percent fall in shipments during 2016, to just 676 tonnes.

But news this week suggests India’s gold demand is coming back to life — for the first time in nearly a year.

Preliminary statistics on India’s February gold imports showed a major lift. With gold experts GFMS estimating that the country brought in 50 tonnes of bullion during the month — up 82% from the 27.4 tonnes Indian buyers imported during February 2016.

That’s a rare uptick for India’s imports. Which have generally been registering lows over the past several months.

The return of India to the gold market makes sense. Given that many of the factors weighing on demand in 2016 were temporary — including a jewellers strike early in the year, and a cash crunch triggered by demonetization of small bank notes in November.

The demonetization effect had been weighing on India’s gold markets even into January. But the strong February import stats show that the worst may now be over, with Indian consumers making their way back to the market.

The most critical point is that this increased buying is happening even as gold prices are holding relatively high — with an ounce of gold currently selling for near $1,250, not far off the $1,350 peak we saw during the past year. Related: The Secret Wealth Of The World’s Richest Oil Billionaires

When gold ran from $1,050 in early 2016 up those heights, reports suggested many Indian buyers were holding off in hopes of lower rates. But this week’s news shows those holdouts may now have given up the wait, and decided to accept today’s prices as a new normal.

The February buying still isn’t a barnburner — with the 50 tonnes imports during the month working out to just 600 tonnes annualized. But the year-on-year increase is encouraging. Watch to see if the March numbers continue the trend and come in higher than a year ago.

Here’s to a good start.

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