Recently, Kavita Chacko, Research Head, India- World Gold Council- WGC wrote about, India’s gold market update: demand takes a breather following festival rush! Focussing on gold corrects from its recent all-time high but maintains yearly upswing point of view she explained, Gold rose to a new all-time high in mid-May before pulling back, likely on profit taking, to close the month at US$2,343/oz.
This delivered a 1% monthly increase, adding to gains in March (9%) and April (5%). The international price pulled back further in the first half of June (by 1% to US$2,317/oz) following a stronger-than-expected jobs market report in the US and a pause in reported gold purchases by the People’s Bank of China (PBoC).
Despite this, gold remains one of the best performing asset classes with a 12% return y-t-d. Indian domestic landed gold prices continue to closely shadow the movement of international gold prices thanks to the relative stability in the USD/INR.
The discount on the domestic gold price to international price has narrowed from those in March (US$24/oz) and April (US$10/oz) to US$6/oz as of mid-June. This decline in discount – even after Akshaya Tritiya – suggests that gold buying interest continues, in certain quarters, during what is typically a period of low demand.
Key takeaways from her India’s gold market update; are, 1: Global and domestic gold prices extended their streak of gains; up 12% y-t-d, 2: Demand softened after Akshaya Tritiya, 3: The discount between domestic and international gold prices narrowed, 4: The RBI has added 30.6t2 to reserves so far this year, taking total gold holdings to a record high of 834.2t, 5: Positive flows resumed into gold ETFs in May & 6: Gold imports have seen a consistent increase in May.
By looking ahead, Kavita shared two points,
1: We anticipate that jewellery demand will predominantly centre on the festival season starting in the latter half of Q3 &
2: Interest in bars and coins is expected to continue.
Offical Facebook account of heerazhaveraat.com, homepage for Trade News, Articles and Promotion of D
Glimpses of Bharat Diamond Bourse Marks 41 Years of Excellence & 15 Years of Operations of BDB Complex with the Release of customized My Stamp by Department of Posts, Government of India.
Below is the full article
https://lnkd.in/dxZJxcbD
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
