Gold traded briefly back above the $1400 level in early New York trading, before retreating back into the range. The market continues to be underpinned by considerable physical interest, both in Asia and here in the U.S.The U.S. Mint is reporting sales of 147,000 ounces in April thus far, with two more weeks left in the month. Some sources are saying the Mint sold 63,500 ounces on Wednesday alone! That's more than they sold in the entire month of March. The U.S. Mint should easily exceed the high water market for the year set in January at 150,000.
Large gold imports
India is known to be among the largest importers of gold in the world. The imports of gold by India have been rising unabated in recent years notwithstanding the sustained increase in gold prices. Such large import of gold, when the gold prices are ruling high is one major source of bulging trade deficit. The deterioration in current account deficit (CAD) due to large gold imports has implications for financing the same, which would reduce the foreign exchange reserves and could become a drag on the external debt. In this context, a major concern emerged is the impact of huge gold imports on external stability.
Trends in gold prices
International gold prices have risen exponentially in the last decade. Since 2000, the international gold prices have grown at compound annual growth rate of 16.3 per cent. The domestic gold prices have moved in tandem with international gold prices in recent years. Volatility in international gold prices in recent quarters is positively skewed implying that it provides fewer large losses and a greater number of larger gains. One of the major components of gold demand in recent years has been investment demand at the global level.
MarketMagnify Financial Services is a leading Stock Advisory Company having a strong hold in providing most authentic and accurate Stock Tips as well as Commodity tips . We are a team of highly qualified and experienced analyst’s team, who deliver their expertise in providing stock market calls for traders which include tips like MCX Tips, nifty future tips, stock future tips, stock cash tips, Bullion tips. All services are provided through SMS and Instant Messenger.
For 2 Days Free Stock Market Tips, please visit our site at www.marketmagnify.com or please call our 24/7 Customer Care Support us 0731 – 6619000