The latest gold trade suggests that the country may witness record imports of gold during the month of March this year. As per preliminary data, the imports during the month have already crossed 130 tonnes during the initial three weeks of March this year. Estimates suggest that monthly gold imports may well exceed 150 tonnes during the month.
Gold remained firm near its two week high reached yesterday in spite of disappointing Chinese PMI figures. In Singapore, bullion for immediate delivery initially fell prior to gains and was $1,187.46 an ounce near the end of day. These gains continued in European trading.
Following the Federal Open Market Committee meeting last week, Federal Reserve Chair Janet Yellen made it clear (again) that interest rates would not be raised until inflation gains more steam. It’s a prime example of gold’s Fear Trade, which occurs when investors buy gold out of fear of war or concern over changes in government policy.
The physical gold demand in India is likely to stay muted until the commencement of festive season late April. The festival buying is likely to peak during Akshaya Tritiya which falls on April 21 this year.
Gold and silver were both strong for the week – gold rose 2.42% and silver surged 7.45%. Gold climbed 1.1% or $12.90 and closed at $1,183.20 an ounce Friday, while silver surged 3.72% or $0.60 at $16.73 an ounce.