Commodity Trade Mantra
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Posts Tagged ‘Current Account Deficit’

Modi the new hope for Gold, but may disappoint: Clyde Russell

Gold bulls tend to flit from one thing to the next in search for a reason for gold to rally, with the latest hope being Modi’s election victory in India. Modi is likely to be reluctant to give a signal that it’s “game on” for gold imports again, as he won’t want the current account deficit to start heading the wrong way once more.

Will BJP's Win Boost Gold Prices In India?

Irrespective of India’s election outcome or BJP’s win and whatever happens to India’s gold policy then in the coming weeks and months, it’s highly unlikely to boost gold prices either way. The root cause of India’s huge gold demand meanwhile remains unaddressed.

India Eases Gold Import Rules As Smuggling Connected To Campaigns

India eased import regulations to allow some of the private sector banks to buy gold from abroad, a move that could double current monthly gold imports. Election officials are also looking into alleged cases of smaller political allies using smuggled gold to fund their pre-election campaigns.

Gold Smuggling Explodes in India after Moves Intended to Curb Demand

A 38-kg bust of gold smuggling allegedly involving a ring of Afghan women is just the latest example of a massive surge in gold smuggling, evidenced by data on gold seizures at airports. Officials said nearly 85 kgs of gold has been seized by the customs department since the beginning of 2014.

What Is Happening With Gold In India?

Given sustained high inflation & an extremely difficult investment environment in India, Indians desperately need a hedge against inflation. Unfortunately, there are very limited options. Indians love gold & will do so for a foreseeable future. Moreover, gold has done quite well for Indian investors.

Is Renewed Indian Demand Driving Gold Prices Higher?

To ease gold import restriction by end of March would gain votes, so the government has every incentive to do so. Gold prices would be pushed higher by an easing of duties and restrictions on Indian gold imports, disproportionately more than the actual increase in the tonnage then imported.

Gold Prices Rise To 4 Month High, But Will The Bull Run Continue?

I would be a bit cautious because we’ve seen swings in equity markets & turmoil in emerging markets subside & that’s not a strong backdrop for gold prices going forward. Without any meaningful shift in investor sentiment & given the positive macroeconomic outlook, gold’s rally may be temporary.

Another Phenomenon - Flights Arrive Laden With Gold

It’s raining gold at Kerala’s airport. Every plane landing from the Middle East here now carries 40-80 kg of gold, translating into Customs duties between Rs 86.8 lakh and Rs 1.74 crore – Gold smuggling is back as hiked import duty and restrictions make the precious metal even more precious.

The US and China are Heading for Trouble

The US stimulates its people to buy more Chinese-made goods. And China stimulates its manufacturers to make more stuff for people who can’t really afford it. Americans are hooked on spending while China is hooked on producing – Both are heading for trouble.

Curbs On Gold Imports In India To Stay Despite Easing Trade Gap

India will keep a tight leash on gold imports despite a recent improvement in its trade deficit and lobbying by a bullion industry struggling with high premiums and a supply crunch – Indian importers have never been subject to restrictions and that is why they are finding this very painful.

Craving for Gold leads Bullion Smuggling way above Narcotics

The hike in import duty on gold has led to a spurt in smuggling of gold into the country from neighboring states like Bangladesh, Myanmar and Sri Lanka – Gold and narcotics operate as two different syndicates but gold smuggling has become more profitable and fashionable.

India's Temples Guard Their Gold From Government

India’s temples are resisting divulging their gold holdings – perhaps nearly half the amount held in Fort Knox – amid mistrust of the motives of authorities who are trying to cut a hefty import bill that is hurting the economy.

Gold Is Not A Safe Haven? Tell That To People In Indonesia

Rupiah, the currency of Indonesia has weakened nearly 15% against the dollar since the start of June and 20% against gold since June 28th; And by nearly 600% against gold since 2000 – Can someone tell the people of Indonesia that Gold Is Not A Safe Haven?

Is The Emerging Market Growth Story Over?

There are a large emerging economies that are slowing which raises the question as to whether the emerging market growth story is over, with investors pulling at least some of their money out from these countries.

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