Today's Commodity News : 05.11.2019
India's October gold imports drop 33% as higher prices curtail festive buying
India's gold imports in October fell a third from a year earlier, dropping a fourth straight month as near record-high prices dampened festive buying in the world's second-biggest consumer of the metal, a government source said on November 4. Lower imports by the South Asian country could cap gains in global prices that are trading near their highest level in more than six years, and may also help New Delhi bring down its trade deficit and support the Indian rupee. India fills nearly all of its gold demand through imports. India imported 38 tonnes of gold in October, down 33 percent from 57 tonnes a year earlier, the source said on condition of anonymity as he is not authorised to speak to media. In value terms, the October imports were at $1.84 billion, up 4.5 percent from $1.76 billion last year, he said. Higher gold prices badly affected retail purchases during the Diwali and Dussehra festivals, said Surendra Mehta, secretary of the India Bullion and Jewellers Association. This year Indians celebrated both the festivals - for which buying gold is considered auspicious - last month.
In September, local gold futures hit an all-time high of 39,885 rupees ($563.94) per 10 grams and have risen about 22 percent so far in 2019, tracking a rally in global prices and due to a depreciation in the rupee. There could be a further drop in November. "Usually demand moderates after Diwali," said Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in Chennai. India's gold imports could fall below 30 tonnes in November, said a Mumbai-based dealer with a gold importing bank, which would mark a drop of two-thirds from last year's 84.8 tonnes. "Unless prices correct significantly, say by around 3,000 rupees (per 10 grams), we won't see a revival in the demand," the dealer said.
Gold prices are expected to trade lower today
On Monday, spot gold prices ended lower by 0.28 percent to close at $1509.2 per ounce. Prices dipped after U.S. & China expressed their optimism over striking a deal this month to end the prolonged trade war. The 16 month long trade spat had roiled the markets and boosted the appeal for the safe haven asset, Gold. However, situations have seemed to run around as both countries are trying to find a way out of the protracted tariff spat which has boosted the risk appetite amongst investors and pushed Gold prices lower.
Outlook
Optimism over a possible trade deal between U.S. & China amid positive economic data from U.S. & China might boost the risk appetite amongst investors and dent the appeal for the safe haven asset. On the MCX, gold prices are expected to trade lower today; international markets are trading lower by 0.23 percent at $1507.6 per ounce.
India's gold imports in October fell a third from a year earlier, dropping a fourth straight month as near record-high prices dampened festive buying in the world's second-biggest consumer of the metal, a government source said on November 4. Lower imports by the South Asian country could cap gains in global prices that are trading near their highest level in more than six years, and may also help New Delhi bring down its trade deficit and support the Indian rupee. India fills nearly all of its gold demand through imports. India imported 38 tonnes of gold in October, down 33 percent from 57 tonnes a year earlier, the source said on condition of anonymity as he is not authorised to speak to media. In value terms, the October imports were at $1.84 billion, up 4.5 percent from $1.76 billion last year, he said. Higher gold prices badly affected retail purchases during the Diwali and Dussehra festivals, said Surendra Mehta, secretary of the India Bullion and Jewellers Association. This year Indians celebrated both the festivals - for which buying gold is considered auspicious - last month.
In September, local gold futures hit an all-time high of 39,885 rupees ($563.94) per 10 grams and have risen about 22 percent so far in 2019, tracking a rally in global prices and due to a depreciation in the rupee. There could be a further drop in November. "Usually demand moderates after Diwali," said Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in Chennai. India's gold imports could fall below 30 tonnes in November, said a Mumbai-based dealer with a gold importing bank, which would mark a drop of two-thirds from last year's 84.8 tonnes. "Unless prices correct significantly, say by around 3,000 rupees (per 10 grams), we won't see a revival in the demand," the dealer said.
Gold prices are expected to trade lower today
On Monday, spot gold prices ended lower by 0.28 percent to close at $1509.2 per ounce. Prices dipped after U.S. & China expressed their optimism over striking a deal this month to end the prolonged trade war. The 16 month long trade spat had roiled the markets and boosted the appeal for the safe haven asset, Gold. However, situations have seemed to run around as both countries are trying to find a way out of the protracted tariff spat which has boosted the risk appetite amongst investors and pushed Gold prices lower.
Outlook
Optimism over a possible trade deal between U.S. & China amid positive economic data from U.S. & China might boost the risk appetite amongst investors and dent the appeal for the safe haven asset. On the MCX, gold prices are expected to trade lower today; international markets are trading lower by 0.23 percent at $1507.6 per ounce.