Today MCX Gold imports are set to fall further this year as global bullion rate are driven higher by surplus cash in the stock market and by a weaker dollar, delegates at a major conference on the metal said on Friday. More Information about gold tips for today visit my site mcx-trade-tips.blogspot.com
As it is the biggest consumer of bullion, In India's demand has traditionally been a key determinant of MCX gold prices, although it has been overtaken in recent years by the weight of Western investors seeking sanctuary from the global financial crisis.
"Investors in America or in Europe might step in and make up the difference, but it (India's falling consumption) is something that will have a negative impact on the MCX gold price."
MCXZ Gold rate, currently near USD 1,671 an ounce, are set to end Friday with their biggest weekly rise since early June, up 3.0% percent, after last minutes of a Federal Reserve meeting showed the US central bank is set to deliver another round of monetary stimulus "fairly soon" unless the country's economy improves considerably.
FURTHER IMPORT DUTY INCREASES FORECAST
Indian Government increased import duty for MCX gold earlier in the year, from 1.0% to 2.0%, and then to 4.0%. One bullion banker said delegates at the conference were speculating that this may be raised further to at least 7.0%.
Local dealers reported an increase in the amount of gold flowing into India unofficially, and scrap sales are on the rise as high rupee prices and a slowing economy result in a mass selling of jewellery in India, he said.
These factors may result in a repeat of the strike action carried out by jewellers in March, the banker added, particularly if the government further increases duties.
As it is the biggest consumer of bullion, In India's demand has traditionally been a key determinant of MCX gold prices, although it has been overtaken in recent years by the weight of Western investors seeking sanctuary from the global financial crisis.
"Investors in America or in Europe might step in and make up the difference, but it (India's falling consumption) is something that will have a negative impact on the MCX gold price."
MCXZ Gold rate, currently near USD 1,671 an ounce, are set to end Friday with their biggest weekly rise since early June, up 3.0% percent, after last minutes of a Federal Reserve meeting showed the US central bank is set to deliver another round of monetary stimulus "fairly soon" unless the country's economy improves considerably.
FURTHER IMPORT DUTY INCREASES FORECAST
Indian Government increased import duty for MCX gold earlier in the year, from 1.0% to 2.0%, and then to 4.0%. One bullion banker said delegates at the conference were speculating that this may be raised further to at least 7.0%.
Local dealers reported an increase in the amount of gold flowing into India unofficially, and scrap sales are on the rise as high rupee prices and a slowing economy result in a mass selling of jewellery in India, he said.
These factors may result in a repeat of the strike action carried out by jewellers in March, the banker added, particularly if the government further increases duties.
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