• 14 hours The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days "And this is perhaps the most dangerous kind of government there can be."
  • 15 hours Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days Demonising fossil fuels has caused major grid problem in Australia
  • 15 hours "...too many politicians believe things that aren’t true." says Robert Rapier
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 327 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 5 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Dave Forest

Dave Forest

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

More Info

Premium Content

Gold Prices Just Did Something They Haven’t Done All Year

Finally the global gold market is getting some good news from its top consuming nation — India.

Reports earlier this week suggest that something very unusual has just happened with India’s local gold prices: they’ve jumped to a premium above worldwide bullion prices.

That’s big news because — so far this year — India’s prices have been lagging the rest of the world. With gold here selling at discounts of $50 or more per ounce below average global prices.

But that situation has now apparently reversed itself. With local media reporting that gold sellers in Mumbai’s Zaveri Bazar were quoting gold at $1 to $2 above benchmark pricing. Marking the first time this year that India’s prices have pulled back to parity.

And that’s a critical observation for all participants in the global gold sector.

Here’s why.

As I’ve discussed in the past, India’s buyers tend to act as a floor for the gold market. When gold prices rise (usually driven by speculative trading in places like New York and London), India’s buyers tend to stay away from the market — waiting for a correction to offer a better buying opportunity.

That’s exactly what we’ve seen so far this year. With gold prices rising from near $1,000 to as high as $1,350 per ounce, India’s buying all but dried up. In fact, stats released this week show that India’s gold imports for January to September likely fell 59% to just 270 tonnes — down from 658 tonnes in the same period in 2015. Related: The Coming Oil Price Crash

That lack of buying caused gold prices across India to sag into discount, as buyers waited for better rates to prevail.

And this week’s news shows that Indians now feel that buying opportunity is at hand. With reports suggesting that bullion’s recent plunge to $1,250/oz has lured buyers back into the market.

Such a return of Indian buying is typically a sign that the market has reached bottom — with an influx of new purchases helping to set a floor under prices. Watch for gold to stabilize over the coming weeks, perhaps setting the stage for a renewed rally.

Here’s to getting back in the market

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News