• Tag Archives India
  • Gold Bullion Fails to Recover $1300 Even as Dollar Retreats Post-Fed, Kim + Trump Trade Insults

    Gold bullion rallied almost $10 per ounce on Friday from yesterday’s 4-week lows against the Dollar but failed to recover what analysts called the “key pivot” of $1300 despite claims of safe-haven buying after Pyongyang threatened to test a nuclear bomb over the Pacific Ocean.
    The Yen rose faster versus the Dollar, erasing last week’s 0.7% gain in gold for Japanese investors, as Kim Jong-un – leader of the regime in neighboring North Korea – called US President Trump “deranged”, and Trump called Kim a “madman”.
    “Chinese interest was once again prevalent to underpin the early session bid,” says one Asian bullion desk.
    Ratings agency S&P today downgraded China‘s sovereign debt one notch to A+, saying that credit growth remains strong and “deleveraging is likely to be [too] gradual.”
    This was the ” wrong decision” Beijing’s Finance Ministry replied.
    Chinese gold premiums, over and above the global reference rate of London prices, held Friday at $7 per ounce, still below the typical incentive for new imports of $9-10 per ounce.
    After India’s gold bullion imports tripled from a year ago to $15 billion-worth in April-August, “We don’t favor a blanket restriction on gold imports,” the Economic Times today quotes a Commerce Department official, “[because] it may involve disputes in the World Trade Organisation.”

    This post was published at FinancialSense on 09/22/2017.

  • Asian Metals Market Update: September-21-2017

    A December interest rate hike and more hikes next year is more or less a certainty. This is the first time this year that the Federal Reserve has been very clear on the US economy and the US interest rate cycle. Any reduction on North Korean risk can result in another wave of sell off for gold and silver. The fall is good for a sustained medium term rise in gold and silver. Indian demand for gold will rise for the next month. I can expect the media to be filled with all kinds of bearish views on gold and silver. I prefer to use the sharp fall (if any) in gold and silver for the rest of the year to invest for a period of three years and more. Once again my preference will always be for physical gold as opposed to a gold ETF. I will be looking for price bottom formation every day for medium term opportunities.
    China has a holiday from 1st October to 6th October. On 9th October the USA is closed. In between we have the US September nonfarm payrolls on 6th October. Chinese are the great gobblers of gold. I expect massive Indian demand and massive Chinese demand for gold (if they continue to fall) on or before 30th September.

    This post was published at GoldSeek on 21 September 2017.

  • Gold Ownership: A Golden Wave

    Several weeks ago, I surprised most investors by issuing my ‘Book Profits Now!’ call for the precious metals asset class. When I did so, head and shoulders top formations immediately formed on gold and GDX, and prices have swooned. Rumours of a sudden drop in Indian dealer demand appeared to become a concern for commercial traders on the COMEX. India’s monsoon season has turned out to be a bit of a ‘bust’, with both flooding and drought. Farmers buy gold with a portion of their crop profits. With only another week or two left in the monsoon season, crop sales may not be very good. Of further concern to me was the fact that the demand drop was occurring as gold arrived at the $1352 resistance zone. That resistance was created by Modi’s cash call-in that took place in November of 2016. The upcoming Fed meeting will probably mark the end of the decline related to those concerns, but there could be additional weakness until the next US jobs report is released. Please click here now. Double-click to enlarge. For investors, this gold chart tells the entire tactical story. The $1270 – $1260 area is the target of the H&S top pattern. Investors should use a two-pronged strategy to profit from the coming rally that should take gold back to the ‘Call-In Day’ resistance around $1352. I’ve outlined the $1315 – $1295 price area as the first key buy zone. Eager accumulators can buy right now.

    This post was published at GoldSeek on 19 September 2017.

  • Diwali, Lord Rama, and the Return of Gold from Exile

    October 19, 2017 marks an important holiday in the Indian culture. Diwali begins.
    Diwali is one of the biggest festivals for Hindus, Sikhs, and Jains. It is a lavish celebration of the victory of light over darkness with its gleaming candles, luxurious works of art, and opulent feasts. Diwali is also characterized by gift giving. Buying and gifting gold is considered auspicious during Diwali.
    Given the nature of the holiday and the number of people who celebrate it, according to CNBC, the past few years have seen a tendency for the gold price to rise around Diwali. Last year during Diwali, Mihir Kapadia, founder & CEO of Sun Global Investments, said ‘As heavy consumers, the festive seasons always tend to surge the demand, and considering the current low prices, this should increase the market activity and thus push the prices a little.’ Kapadia continued, ‘We do not expect it to boost prices significantly as the overall market is subdued due to the worries about rising interest rates.’
    There is no shortage of economic analysis during the buildup to this year’s celebration as The Economic Times reported ‘bullion has climbed almost 10 percent on the Indian market this year as world prices increased on… reduced chances of a further hike in U. S. interest rates in 2017.’

    This post was published at GoldSeek on Tuesday, 19 September 2017.

  • India Gold Imports Nearly Triple in August Despite Tax Increase and Government Regulations

    Despite rising prices, a tax increase, and government attempts to tighten regulation of the jewelry industry, gold continues to flow into India.
    Gold imports into the country nearly tripled year-on-year in August. An estimated 60 tons of the yellow metal flowed into the Asian nation last month, up from 22.3 tons in August 2017. This continues a trend for the year. Over the first 8 months of 2017, India’s gold imports climbed to 617.5 tons, a 158% increase over 2016.
    As a Reuters report notes, the Indian gold market has an impact on the broader world market.
    Higher purchases by India, the world’s second biggest consumer, could support global prices, trading near their highest level in a year.’
    The continued flow of gold into India demonstrates the resilience of the market in that country. On July 1, the Indian government replaced a labyrinth of taxes with a nationwide 3% Goods & Services Tax (GST). The World Gold Council called it the ‘biggest fiscal reform since India’s liberalization in the early 1990s.’ The WGC said the new tax structure would ultimately increase demand for gold in India, but analysts braced for a short-term dip in imports as the tax went into effect and the market adjusted to the new system.

    This post was published at Schiffgold on SEPTEMBER 18, 2017.

  • Suddenly, ‘De-Dollarization’ Is A Thing

    For what seems like decades, other countries have been tiptoeing away from their dependence on the US dollar. China, Russia, and India have cut deals in which they agree to accept each others’ currencies for bi-lateral trade while Europe, obviously, designed the euro to be a reserve asset and international medium of exchange.
    These were challenges to the dollar’s dominance, but they weren’t mortal threats.
    What’s happening lately, however, is a lot more serious. It even has an ominous-sounding name: de-dollarization. Here’s an excerpt from a much longer article by ‘strategic risk consultant’ F. William Engdahl:
    Gold, Oil and De-Dollarization? Russia and China’s Extensive Gold Reserves, China Yuan Oil Market
    (Global Research) – China, increasingly backed by Russia – the two great Eurasian nations – are taking decisive steps to create a very viable alternative to the tyranny of the US dollar over world trade and finance. Wall Street and Washington are not amused, but they are powerless to stop it. So long as Washington dirty tricks and Wall Street machinations were able to create a crisis such as they did in the Eurozone in 2010 through Greece, world trading surplus countries like China, Japan and then Russia, had no practical alternative but to buy more US Government debt – Treasury securities – with the bulk of their surplus trade dollars. Washington and Wall Street could print endless volumes of dollars backed by nothing more valuable than F-16s and Abrams tanks. China, Russia and other dollar bond holders in truth financed the US wars that were aimed at them, by buying US debt. Then they had few viable alternative options.

    This post was published at DollarCollapse on SEPTEMBER 15, 2017.

  • Gold: Key Rebuy Prices

    It’s not easy to build wealth in any asset class. It’s even more difficult to retain it. On that golden note, please click here now. Double-click to enlarge this short term gold chart. Over the past week or two, my wealth building mantra has been, ‘Book profit now’. From a technical standpoint, the world’s mightiest metal has begun to show signs of ‘head and shouldering’. Head and shoulders top patterns are negative for the price, and it’s normal for them to appear when gold reaches strong resistance. Strong resistance is not created out of thin air. It’s created by major fundamental events. To view the ramifications of one of those events, please click here now. Double-click to enlarge. In November of 2016, many gold market players were buying gold aggressively as it became obvious that gold enthusiast Donald Trump had won the US election. The gold price spiked higher as Trump won, and then imploded when the Indian government’s shocking demonetization announcement ruined the party. Conspiracy buffs will find it very suspicious that the Indian demonetization announcement seemed to happen just minutes after Trump had won.

    This post was published at GoldSeek on Tuesday, 12 September 2017.

  • SWOT Analysis: The Gold Rally Is Looking Good

    The best performing precious metal for the week was gold, followed by silver. Gold traders and analysts are bullish for a 12th straight week, reports Bloomberg, as the yellow metal is on its way to the highest price in a year. With tensions from North Korea, coupled with a weaker U. S. dollar, volume on the COMEX in New York hit a record in August. Some 6.55 million contracts, worth nearly $900 billion now, changed hands last month. Bob Savage, CEO of Track Research, cites North Korea as the biggest investor worry right now and believes that ‘the safe-haven to watch into this mess remains gold.’ In addition, last week investors poured $1 billion into the largest ETF backed by bullion, Bloomberg reports. U. S. jobless claims jumped by the most since 2012, reports Bloomberg, and in combination with dollar weakness, sent gold surging to a one-year high. Mid-week, the yellow metal remained little changed as President Trump agreed to a three-month debt limit extension, along with Federal Reserve Vice Chairman Stanley Fischer resigning. India is planning for a new spot gold exchange in November, reports Scrap Register and Sharps Pixley. The new exchange should boost transparency, help measure inspection and repair a fragmented jewelry industry. Currently in India, gold is traded on exchanges as futures only. According to the article, earlier in 2013, authorities halted trading on the National Spot Exchange, and since then spot gold hasn’t been trading in the spot market.

    This post was published at GoldSeek on 11 September 2017.

  • Venezuela Is About To Ditch The Dollar In Major Blow To US: Here’s Why It Matters

    Authored by Darius Shahtahmasebi via TheAntiMedia.org,
    Venezuelan President Nicolas Maduro said Thursday that Venezuela will be looking to ‘free’ itself from the U. S. dollar next week, Reuters reports. According to the outlet, Maduro will look to use the weakest of two official foreign exchange regimes (essentially the way Venezuela will manage its currency in relation to other currencies and the foreign exchange market), along with a basket of currencies.
    According to Reuters, Maduro was referring to Venezuela’s current official exchange rate, known as DICOM, in which the dollar can be exchanged for 3,345 bolivars. At the strongest official rate, one dollar buys only 10 bolivars, which may be one of the reasons why Maduro wants to opt for some of the weaker exchange rates.
    ‘Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,’ Maduro said in a multi-hour address to a new legislative ‘superbody.’ He reportedly did not provide details of this new proposal. Maduro hinted that the South American country would look to using the yuan instead, among other currencies. ‘If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,’ Maduro also said.

    This post was published at Zero Hedge on Sep 8, 2017.

  • Fun on Friday: Make Your Guests Poop Gold

    People eat gold.
    Yes. I know I’ve touched on this before. But I still don’t get it.
    I came across a story this week about a caterer in India who was asked to come up with something that would stun guests at a wedding. So, V Sai Radha Krishna decided he would serve rice covered in 24-karat gold leaf.
    Yup. Sai decided to take the most bland food in the world and spruce it up with a tasteless topping of gold.
    It is not new to have gold. People have been eating sweets wrapped in gold leaf and silver leaf. I tried the same with rice. I knew that gold leaf will melt on hot steamed rice. I just tried it, and it worked well.’
    It’s important to emphasize here that gold doesn’t have any flavor. It’s all for show. If you eat chocolate wrapped in gold, you at least get the joy of eating chocolate. Or if you put gold on a steak like they do at Hiroshi, a upscale restaurant in Silicon Valley, you get to eat a mouth-watering steak. But this is just plain old, sticky white rice. You can melt all the gold leaf on it you want. You’re still eating plain old, sticky white rice. I’m not really impressed.

    This post was published at Schiffgold on SEPTEMBER 8, 2017.

  • Gold Bullion +16% YTD vs Weak Dollar Yet European Gold ETFs Grow Faster

    Gold bullion held $5 below yesterday’s late spike to 12-month highs in Asian and London action on Wednesday, trading at $1340 per ounce after a key US Fed policymaker said weak inflation warns against raising interest rates and new data showed gold-backed ETFs expanding strongly in August.
    Consumer demand and physical buying in the wholesale bullion market remained weak, however, with the Shanghai premium, over and above comparable London quotes, slipping below $3 per ounce as the Chinese Yen rose to new 14-month highs against the Dollar.
    That was the weakest level incentive for new gold bullion imports to China – the world’s No.1 miner, importer and consumer market – since September last year, and barely 30% of the last 18 months’ average.
    Demand in the No.2 consumer market of India also remained weak Wednesday as prices rose for a fifth day running, with dealers reporting wider discounts to the global benchmark of London quotes from last week’s $6 level despite the approaching peak festival season.
    Asian stock markets meantime followed New York lower after Tuesday’s drop in US equities as reports said North Korea’s latest nuclear weapons tests “caused numerous and widespread landslides“.

    This post was published at FinancialSense on 09/06/2017.

  • Gold: Book Profits Now

    Gold has staged a fabulous rally from about $1220 to $1245. Using the December futures price chart, I’ve defined the $1300 – $1350 area as a spectacular profit booking opportunity for investors. Please click here now. Double-click to enlarge this gold chart. I’m an eager gold bullion seller now, but I’m less eager to sell gold stocks or silver bullion. That’s because they have not taken out their February highs while ‘Queen Gold’ has done so easily. Gold has clearly been the leader. It’s been a great upside ride, and now it’s time for investors to book solid profits with a big smile. I’ve been adamant that gold is on the cusp of a two hundred year ‘bull era’. It’s themed around the love trade in China and India. For that reason, core positions should not be sold, but short term positions bought in the $1200 – $1250 area should definitely be sold aggressively now. Investors who are nervous that they will miss out on more upside action should buy call options while selling some bullion. Call options are like lottery tickets; if gold surges above $1350 and runs to $1400, the call options will rise in value quite significantly.

    This post was published at GoldSeek on Tuesday, 5 September 2017.

  • Fun on Friday: How to Smuggle Gold and Get Caught

    Almost every morning as I scour the interwebs for gold news, I run across a story about gold smuggling. It’s big business, you know. Particularly in countries like India that have high import tariffs on the yellow metal. Just yesterday, customs authorities arrested a father-son duo at the international airport in Delhi.
    In fact, according to an article I read about smuggling, gold is the fifth-most smuggled item in the world. It ranks higher than food, cigarettes, and cash.
    It’s a lucrative business, as you can imagine. People want gold, and they’ll go to great lengths to have it. But smuggling isn’t as easy as you might think. You have to be clever.
    Take our dynamic Indian duo. They apparently just tried to hide two gold kada, two gold chains, and two belt buckles weighing a total of about 1,700 grams in their suitcase.
    Come on guys. You can’t just shove some gold in your suitcase and hop a flight to India. Well, you can. But you’re going to end up in jail like these two. If you want to get your smuggled stash past customs, you have to think more creatively.

    This post was published at Schiffgold on SEPTEMBER 1, 2017.

  • Gold Stocks Portfolio Fuel

    SPDR fund tonnage (GLD-NYSE) has recaptured the 800 ton mark, and rose to 814 yesterday. This is happening as a steady wave of institutional money managers embrace gold as an important portfolio component. It’s also occurring as Indian dealers begin buying for Diwali. The result of this overall ramp-up in demand is a beautiful surge higher in the gold price! Please click here now. Double-click to enlarge this important gold chart. I call this my ‘Road To $1392’ chart. When the price of an asset arrives at major resistance in a huge chart pattern, a real upside breakout and sustained move higher can only occur if market fundamentals are aligned with the technical set-up. The good news is that for gold, this appears to be the case. Please click here now. Double-click to enlarge this monthly gold chart. The $1377 – $1392 price range is the resistance zone of a huge inverse head and shoulders bottom pattern. It is the neckline of the pattern. Note the tremendous rise in volume that is occurring as gold makes a beeline to that neckline. The Indian gold market has completed its restructuring, and Western money managers are lining up to add gold to their portfolios. The managers are not just making a one-time purchase. They are adding gold as a percentage allocation. That allocation seems to be averaging around 5%. As the funds gather new assets, they buy more gold to maintain that 5% allocation. Asian fund managers typically give gold an even higher allocation to gold in their funds than Western managers. As China and India become the main economic empires, Western money managers will tend to play ‘follow the Chindian leader’. That means the current Western money manager allocation to gold that is about 5% could easily rise to 10% or 15% in the coming years. Clearly, all liquidity flow lights for gold…are green!

    This post was published at GoldSeek on 29 August 2017.

  • The Aramco IPO: A Geopolitical Game Of Thrones

    The already strong bilateral relations between Saudi Arabia and China are hitting new levels, as the Kingdom and the Chinese Tiger have decided to set up a joint US$20 billion investment fund. The fund was announced by Saudi minister of energy Khalid Al Falih, after meeting with Chinese vice-prime minister Zhang Gaoli in Jeddah. Falih indicated that both countries will share the total investments and will be splitting the revenues of the fund, which is going to target projects in infrastructure, energy, mining and materials. This is not a surprise, as Saudi Arabia has already been heavily investing in energy and petrochemicals in China the last decades. Saudi Aramco’s main downstream investments lately almost all have been focusing on increasing the Saudi footprint in downstream China, mainly to lock in Chinese demand for crude and products. Falih also reiterated that both countries will sign around $20 billion in value of projects in the coming days. As reported in the press, Saudi Arabia will be willing to invest in the fund partly in yuan. The current visit by the Chinese is of significance, as it could be a precursor to a hefty Chinese involvement in the eagerly awaited Saudi Aramco IPO next year. In March, during a visit of the King Salman to China, the two countries signed several energy and space technology deals worth $65 billion.
    Saudi Arabia has, in recent years, shown a willingness to form more in-depth relationships with its main Asian customers, China, India and Japan. The Chinese energy demand, which is still the main driver of the global oil and gas market growth, is considered to be vital for Saudi Arabia’s future. The Kingdom is currently in a heavy battle with Russia and arguably Iran for the title of China’s biggest oil supplier, a title that Russia took from Saudi Arabia at the start of this year. Several analysts have been very worried about this development as it could weaken the IPO of Saudi Aramco. However, Aramco’s prominent position in the Chinese market, and the ongoing investments that the Saudi oil giant is making in downstream production and capabilities in China, will contain any negative repercussions from loss of market share. In the long-run, Aramco’s position in China will only strengthen, which will allow the Kingdom to lock in a hefty portion of its export volumes.

    This post was published at Zero Hedge on Aug 29, 2017.

  • Gold Market Charts – August 2017

    The August wrap-up of BullionStar’s monthly gold charts column looks at the latest data for Chinese gold demand, Indian gold imports, Swiss gold imports and exports, and Russian official gold reserve accumulation.
    Separately, note that BullionStar’s website offers a range of dynamic charts under the BullionStar Charts menu. The data underlying these charts spans precious metals, major currencies, stock indices and major stocks, and also charting of BullionStar bullion products. Charting utilities on the BullionStar Charts page allows every asset / financial instrument featured to be measured in terms of every other asset or instrument featured.
    Shanghai Gold Exchange (SGE) gold withdrawals Physical gold withdrawals from the Shanghai Gold Exchange are a good proxy of wholesale gold demand in mainland China. Why this is so is explained in Koos Jansen’s articles and also in summary article in the BullionStar Gold University titled “The Mechanics of the Domestic Chinese Gold Market.”
    During July, gold withdrawals from the SGE gold vaulting network across China totalled 144.7 tonnes, which was the second lowest SGE monthly gold withdrawals so far this year.

    This post was published at Bullion Star on 27 Aug 2017.

  • Market Talk- August 25, 2017

    Main talking point out of Asia this morning were the continued strong earnings reports and the subsequent buying conviction. In Hong Kong the Hang Seng gained over 1.2% whilst the domestic Shanghai index rallied near 2% after earnings beat expectations to finish the week well bid. We saw solid gains in Financials, energy, communications and even retailers even before waiting for central bankers at Jackson Hole. The Nikkei added a little positivity to the region (+0.5%) but is obviously still wary as the currency remains clued to the 109 level, even after we saw the Jly CPI data rise +0.5%. Australia’s ASX was unable to join the party, closing small down whilst the Indian SENSEX was closed for holidays.

    This post was published at Armstrong Economics on Aug 25, 2017.

  • Keiser Report: ‘Bitcoin’s going to be worth a trillion dollars soon’ (E1113)

    The following video was published by RT on Aug 22, 2017
    In this episode of the Keiser Report Max and Stacy discuss the Trump administration starting some trade wars – from renegotiating Nafta to looking at China’s treatment of ‘intellectual property’. They also discuss the trillions in unexploited mineral resources in North Korea. In the second half Max interviews Dan Collins of TheChinaMoneyReport.com to discuss the ‘Doklam Transgression’ and the ‘Line of Actual Control’. The media has largely ignored the confrontation between India and China but will they notice if a hot war breaks out?

  • Gold Versus The Yen

    For gold to perform well against the US dollar, it needs to perform well against the Japanese yen. Please click here now. Double-click to enlarge. Since 2011 gold has traded sideways against the yen. Since 2013 it has been coiling in a very positive symmetrical triangle pattern. An upside breakout would usher in a major move higher for gold against both the yen and the dollar. Since 2013, the Indian market has been dealing with major duty, import rule, and hallmarking issues. The process has weighed on demand since 2012. India’s gold market has undergone an enormous restructuring in response to these issues. The good news is that the restructuring is essentially complete now. That paves the way for higher imports on a much more consistent basis. China has made significant progress in tying gold price discovery more to physical demand versus supply.

    This post was published at GoldSeek on Tuesday, 15 August 2017.

  • Gold Coins and Bars See Demand Rise of 11% in H2, 2017

    – Gold coins, bars see demand rise of 11% in H2, 2017 to 532 tonnes according to WGC Gold Demand Trends
    – Gold investment demand strong in China, India & Turkey
    – Demand in Turkey surges on double digit inflation
    – Total gold demand declines in Q2 on slower U. S. ETF inflows
    – Gold held in ETFs in Europe reached all time high of 978t
    – U. S. ETF inflows slowed from last year’s record
    – Central banks continue to buy – 94t of declared purchases
    – Turkey joined Kazakhstan & Russia in buying gold
    – Well balanced market: ETF inflows continue and jewellery, technology and bar & coin demand up
    – Important to note this is all official, transparent and recorded demand. There is demand and flows of gold that cannot be and are not recorded – especially into the Middle East, India, Russia and of course China

    This post was published at Gold Core on August 3, 2017.