In the latest report out of India for the first quarter of 2017, the world’s largest gold consumer market saw a return of soaring imports of the precious metal following a 4th quarter decline due in part to Prime Minister Modi’s attempts to ban most cash.
During the first three months of this year, gold imports were for 230 tons, which is nearly as much as the period between April and November last year when the government instituted a cash ban and a new scheme to bring about a cashless society.
Sentiment has turned up in the gold market the last few weeks. And new data from the world’s top consuming center — India — shows there may indeed be cause for optimism amongst bullion buyers.
Data reported in the local press showed that India’s gold imports saw a big jump during the most recent quarter, January to March 2017. With total imports for the period hitting 230 tonnes.
To put that in perspective, consider some numbers from recent quarters — during which India’s gold imports showed some of the weakest figures on record.
During April to October 2016, gold imports totalled just 264 tonnes. Meaning that incoming shipments for that entire seven-month period were barely above the figures for the most recent three months.
That suggests a major surge in gold demand is happening here. In fact, imports for the Jan-Mar 2017 quarter were the strongest for those months since 2013. – Oil Price
Since the beginning of the year, gold has climbed by more than 11% from $1148 on Jan. 1 to nearly $1300 following last weekend’s trading.
Source: The Daily Economist