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India Doubles Customs Duty on Gold Bullion, Central Banks buy on Dip
From GoldCore
India Doubles Customs Duty on Gold Bullion, Central Banks buy on Dip
Gold’s London AM fix this morning was USD 1,649.00, EUR 1,263.02, and GBP 1,049.05 per ounce.
Yesterday's AM fix was USD 1,646.75, EUR 1,262.26and GBP 1,052.57 per ounce.
Gold closed in New York yesterday at $1,657.30/oz. Gold tumbled in Asia and its low hit $1,645.86/oz and high $1,664.71/oz and is now trading in Europe at $1,646.73/oz.
Cross Currency Table – (Bloomberg)
Gold traded lower on Friday, moving towards a third straight week of losses on the backdrop of a recovering US economy, which prompted investors to put their money in other vehicles, while India’s plan to double the import duty on gold bullion erased some early gains.
On news that Finance Minister Pranab Mukherjee proposed to double the 4% customs duty on gold from April 2012, physical dealers saw some panic buying from India, the world’s largest gold consumer.
In January, India raised the gold import duty 90% and doubled the tax on silver as the government is struggling with a growing fiscal deficit and looked to increase revenues. Growing subsidies for fuel and food have left the government struggling to meet its budget target.
Indian investors, who are the largest consumer group of gold in the world, rushed to buy gold in advance of the government’s plan to increase the 4% customs tax in April 2012. The resulting gains where then eroded by stronger then expected US economic growth numbers.
Market participants will watch US consumer prices data which come out at 12.30 GMT.
Bloomberg Survey
Bloomberg’s survey of 26 bullion analysts show 13 expect prices to rise next week and 4 were neutral, the lowest ratio since Jan. 20th. Hedge funds lowered their bets on a rally by the most since August 2008 in the week ended March 6th, Commodity Futures Trading Commission data show. Bullion prices dropped to an 8 week low on March 14th, fifteen percent below September’s record, and have now dipped beneath the 200- day moving average, a sign of more declines to some market participants.
Gold traders are the least bullish in 2 months after prices erased more than half of this year’s gain on thoughts that a recovering US economy will reduce the likelihood of further Quantitative Easing from the Fed which would include more bond purchases. Gold’s pulled back as the dollar gained after Fed policy makers raised their assessment of the US economy on March 13th.
Central Banks
A decline in prices will allow central banks to increase their reserves. The World Gold Council data shows central banks added 439.7 tons last year, the most in almost 50 years, and project they will buy a similar amount in 2012.
Futures Contracts & ETFs
Open interest in US futures dropped to 437,593 on March 14th, from 523,284 on Sept. 6th, when prices hit a record $1,923.70/oz. Hedge funds and other institutions had a net-long position of 145,997 futures and options by March 6, the lowest level since the end of January, CFTC data showed.
That contrasts with investors in gold-backed ETF products, whose combined holdings grew to a record 2,410.2 metric tons on March 13the now valued at $128.1 billion, as Bloomberg’s data shows. A Bloomberg survey by 14 analysts from the Precious Metals Conference in NY, predict gold bullion to continue its rise for a 12th consecutive year and reach a target of $1,897/oz by Dec. 31st.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
SILVER
Silver is trading at $32.25/oz, €24.62/oz and £20.48/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,665.50/oz, palladium at $691./oz and rhodium at $1,425/oz.
NEWS
(Wall Street Journal)
India to Double Gold Import Duty
(Reuters)
Gold gives up early gains on India's import duty hike plan
(Bloomberg)
Gold Bulls Weakest in Two Months as Economy Gains: Commodities
COMMENTARY
(MarketWatch)
Gold edges higher in Asian trading
(Max Keiser)
Max talks to Goldcore’s Mark O’Byrne about Germany’s gold, Ireland’s austerity and a trial for Bertie Ahern
»
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I Bought on the dip! Does that make me smarter than a central bank?
20 ton Iron ingots are smarter than central bankers.
Especially when they start falling out of the sky.
Now if NASA could figure how to hit Benny, Timmy, JPM or GS, that would be cool!
If the price of gold drops in India, I suspect it will only increase the demand. Its weird how the gold market works there. The high price of gold and the rampant buying is leading to a higher deficit for the government. The problem though is that this will only lead to a larger underground market for gold. India has ridden this path before......
You got it. It will just provide an incentive to create a black market. If the government is against it, it most be good for you type mentality. There is government distrust through out the world now. Indians have been here before, so they know the score. That is why they been stacking gold for centuries and so have the Chinese.
The west doesn't believe in wealth preservation. Instead we go around the world killing and stealing. The British did it and the Spanish and the french and the Portuguese and even the vikings. That is the risk to societies that try to live in a sustainable economy face just like the Chinese (Opium wars) even if they try to wall up the country. That is the problem. When a waring society spends all of its resources in weapons, they have to use them to "profit." Iran will be invaded no doubt.
Bazinga
What really gets me in the heart and draws tears of shame is; how is a street brother expected to maintain his Daddy's (if he knew him) style of bling?
Cheryl: Well, after you left, he started getting into drugs and stuff. Things got really bad when he...
Jack Spade: Well, what? Cheryl, come on!
Cheryl: He started wearing gold chains, Jack.
Jack Spade: Oh, God, no!
OG'd man
'Gold traders are the least bullish in 2 months after prices erased more than half of this year’s gain on thoughts that a recovering US economy will reduce the likelihood of further Quantitative Easing from the Fed which would include more bond purchases.'
BTFD.
Gene is bottom picking.
thoughts that a recovering US economy
That's all they are Thoughts............
2/29/12 takedown on pm's severely damaged technicals-----didn't effect fundamentals
Affect
Bought
They've the mark of the beast already implanted. Ask them for technical assistance. Its a tragedy.
gold at 50 week moving average. buy hand over fist
http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&st=2007-03-16&en=(today)&id=p60380598065
also SPX priced in gold is hitting hard resistance level
http://stockcharts.com/h-sc/ui?s=$SPX:$GOLD&p=W&st=2007-03-16&en=(today)&id=p08781644021
For maximum effect, go ahead and take that chart back 50 years, fucking scary.
ive been looking for a chart like that but cant find it, stockcharts only goes back about 3 years. you got a link?
Perhaps here: http://pricedingold.com/
freestockcharts.com you can get charts looking back more than 8 years & then you can put the CSV data into a spread sheet.
for gold & silver price data I use these URL's:
http://www.fxhistoricaldata.com/download/XAGUSD?t=hour
http://www.fxhistoricaldata.com/download/XAUUSD?t=hour
http://www.fxhistoricaldata.com/download/XAGUSD?t=day
http://www.fxhistoricaldata.com/download/XAUUSD?t=day
generally you can change the first 3 & last 3 to whatever you want. a ZIP file is downloaded from each combination. This data looks back 10 YEARS. That's right, hourly x 10 years.
someone sent me gold & silver data going back to 1921.
I stored the files but haven't actually generated any charts from them yet. Anyone here know how to use pastebin? Dunno if you can just dump something like that there but... can you?
.
dow vs gold, http://youtu.be/8DhryHW0KeM
Gold traded lower, now it's trading higher and Friday just got started. Cut the feed from CNBC.
My bad. India trading. Namaste, Baba Chai Wala. I'll have some more.
Looks like smugglers will find a new growth market in South Asia.
Want to know what the future of America looks like? Look no further than Pakistan or India. As commodities increase, the cost for the SNAP program goes up proportionally. More food and fuel subsidies to come to America as well.
Got physical? You fucking better.
lawsofphysice
"Want to know what the future of America looks like?"
Look no further the Detroit.
Dips Dunks and Dives silver and gold are allways good Buys !
third straight week of losses on the backdrop of a recovering US economy
Really? that word again.
This is where black markets come from. We will just see more gold drained from the system into impossible to trace locations.
Only politicians can be this stupid. Black market will take over and ANY income made from duties will be spent fighting the crime that it will cause. Just look at cigarette issues in New York.
We'll see what the anti-gold schills are saying after Obama is reelected...
Indians own more Au that ALL the worlds nations combined.
18,000 tons at last count.
Inflation in India is very high. So people are buying precious metals to hedge their risk. Besides, US and European central bankers must be putting pressure on India. They must control the world's biggest buyer of precious metals if their effort to suppress prices has any chance of working.
India did not raise the customs duty on silver. Indians will buy a little more silver and a tad less gold. But demand will persist - much to the dismay of western central bankers.
my roomate's mom makes $83/hr on the computer. She has been fired from work for 9 months but last month her pay check was $18339 just working on the computer for a few hours. Read more on this web site ..... http://bit.ly/FPPP3j
Dude your moms a hooker
but how much could I make being a professional troll like you?
Very bullish for the old smuggling trade UAE to Bombay.
Nonething like doubling a tarriff to increase Dhow traffic.
Definitely time to load up on gold bullion & a few silver maples or eagles too. For the more daring, which most people here probably are, a GLD straddle will probably return good profits & the future of the gold price from here to the next 120 days is likely NOT to be flat enough for this to be a dumb idea.
http://flic.kr/p/bpJpXX
http://flic.kr/p/bpTQPM , http://flic.kr/p/aVrgr4
http://flic.kr/p/bjqikK
277 week ROC, gold, observe up to date : http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&yr=2&mn=11&dy=0&id=p99251767410