Today’s AM fix was USD 1,399.50, EUR 1,066.69 and GBP 906.12 per ounce. Yesterday’s AM fix was USD 1,396.50, EUR 1,068.89 and GBP 909.42 per ounce.
Gold gained $3.90 or 0.28% yesterday to $1,402.10/oz and silver finished down 0.09%.
Gold initially traded down over uncertainty on whether the U.S. Fed will decrease its QE and adjusted to the news of India's hike on import duties for the yellow metal.
India should monetize their huge gold stockpiles of over 20,000 metric tonnes according to the World Gold Council (WGC) as reported by Bloomberg this morning.
“In the long term gold could be monetized as a financial asset," Aram Shishmanian, the CEO of the WGC said in India overnight.
The World Gold Council has approached the Reserve Bank of India (RBI) to work with it so that bullion could be used as a financial asset, rather than just a physical asset.
Exactly how the considerable store of wealth that is the gold of Indian people could be monetized was not said.
The move comes close on the heels of a desperate series of steps taken by the Indian government as well as the central bank, aimed at reining in gold imports which is contributing to the rising current account deficit.
The World Gold Council said that they recognise the need for the recent government measures to contain gold imports, but warned that if such a strategy remains in place for long, it may lead to proliferation of the grey market, like it was before India liberalized gold imports about 15 years ago.
Indeed, there already reports of gold being traded in the black market in India.