• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 3 hours Let's shut down dissent like The Conversation in Australia
  • 13 hours Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 5 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 1 min Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 6 hours Donald Trump Proposes Harnessing Liberal Tears To Provide Clean Energy
  • 30 mins One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 32 mins Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 5 hours Saudis Buying Oil From Iraq
  • 11 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 22 hours Democrats and Gun Views
  • 21 hours China Faces Economic Collapse
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




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