As if last year's new regulations from the Indian government had not caused enough turmoil at the local gold markets, today the Ministry of Finance and the Reserve Bank of India (RBI) will be publishing new regulations aimed at raising gold import taxes to 6%.
Following last week’s losses of 0.50% and 2.5% respectively, gold and silver started the final full trading week of the year on a muted note. Thinning participation and year-end book-squaring have begun playing a more significant role.
Gold prices broke to under the pivotal $1,700 mark overnight, and did so despite a slightly weaker US dollar, despite a firmer euro, but alongside almost 1% weaker crude oil values. The decline was partially attributed to an overall slide in commodities.
If proof that gold is money was ever needed then this is it. Four countries, each with significant financial problems caused by the spend-easy qualities that come with fiat money, see their citizens turning to gold.
Gold was still hovering in a narrow range on Wednesday, as investors await monetary policy decisions from the US Federal Reserve (1815GMT) and the European Central Bank (tomorrow), which will determine the direction of markets.
Oil, natural gas, and alternatives dominate the headlines when it comes to energy. But there's a big and largely-overlooked revolution occurring with the energy source likely to become the most preferred fuel for a world in economic decline: coal.
Spot market prices to buy gold traded just above $1,580 an ounce throughout Tuesday morning's London session, up around 0.6% on last week's close following gains the previous day. Prices to buy silver traded in a tight range around $27.50 an ounce.