Indian imports for gold is down, as surging gold prices has cut down on demand for the precious metal, according to Citigroup (NYSE:C).
“Import data indicates that the surge in gold prices during May appear to be taking their toll,” Citigroup economists said in the report. “Although jewelry demand is typically price inelastic, the run-up in prices has begun to hurt consumption.”
Gold acquisitions in the country dropped by over half, as only 16 metric tons to 17 metric tons were purchased in May, plunging from the 34 metric tons acquired in April.
India has been the largest consumer of gold in relationship to jewelry use, although it really hasn't been a factor in gold prices during the year, although in the wedding season it at times can give it a bump up in price.
Economics is what's driving gold prices now, and that's the reason Indian demand for gold is down. That won't be a factor in the price of gold going forward, but a consequence of it.
Showing posts with label Indian Gold. Show all posts
Showing posts with label Indian Gold. Show all posts
Monday, June 21, 2010
Saturday, June 12, 2010
Citigroup (NYSE:C) Sees Silver Outperforming Gold
Over the medium term, Citigroup (NYSE:C) says silver prices could outperform gold prices, as industrial demand for silver continue to rise.
Citigroup analyst David Thurtell said this, "Gold is likely to encounter repeated resistance at the US$1,250 mark over the coming month. The seasonal low period for buying in India is upon us, which will take some of the heat out of the market."
Over the six to twelve months, Citigroup thinks silver could reach $20 an ounce.
I'm not that impressed with the idea Thurtell is making his decision in what appears to be seasonal fluctuations in demand from India, which is high during their seasonal wedding periods.
To tie the existing gold market into India gold jewelry demand doesn't compute, and doesn't account for any of the factors as to why gold prices continue to rise.
That being said, the possibility silver will rise higher than gold in the medium-term is definitely a possibility, although it has nothing to do with whether the people of India are buying gold jewelry.
Citigroup analyst David Thurtell said this, "Gold is likely to encounter repeated resistance at the US$1,250 mark over the coming month. The seasonal low period for buying in India is upon us, which will take some of the heat out of the market."
Over the six to twelve months, Citigroup thinks silver could reach $20 an ounce.
I'm not that impressed with the idea Thurtell is making his decision in what appears to be seasonal fluctuations in demand from India, which is high during their seasonal wedding periods.
To tie the existing gold market into India gold jewelry demand doesn't compute, and doesn't account for any of the factors as to why gold prices continue to rise.
That being said, the possibility silver will rise higher than gold in the medium-term is definitely a possibility, although it has nothing to do with whether the people of India are buying gold jewelry.
Thursday, August 21, 2008
Physical Demand for Gold Increases Ahead of Indian Religious Festivals
Gold is expected to rise based on physical demand, as the Indian religious season is close at hand, and analysts have said the demand is so high at this time for finished products that refiners are having difficulty keeping up with it.
Even so, the major mover of gold prices, the U.S. dollar, is still expected to be the primary mover of gold prices, as many believe gold hasn't bottomed out yet, and until the U.S. dollar corrects, the yellow metal will struggle to make gains in any significant way.
Even so, the major mover of gold prices, the U.S. dollar, is still expected to be the primary mover of gold prices, as many believe gold hasn't bottomed out yet, and until the U.S. dollar corrects, the yellow metal will struggle to make gains in any significant way.
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