Just a week ago we reported on gold sales in India. As you might know, we are heading into wedding season in India, when it is customary to give gold to new brides (and possibly others you love) (and heck, buy something for yourself too). As such, it’s an important barometer for the country’s gold demand.
In last week’s report we noted that sales were down compared to the previous year. New figures out this week indicate that changed sharply in the last week of September – Thomson Reuters now reports gold imports were up 31% for the month. Why the sudden change? This Gold Enthusiast believes it’s all due to the calendar of Indian holidays. This year the Dussehra holiday shifted forward into September, from October last year, pulling gold demand with it. So while this is good for September figures it is bad for October figures. Meaning, sadly, we won’t really have a good read on this years’ trend until mid-October numbers are released.
Your ever-watchful Gold Enthusiast still thinks Indian gold sales will be down this year, owing to the new taxes and money laundering protections now in force. But he shies away from actual predictions as so many of those are proven wrong, and will continue to trade the market as it comes. You can read more on the latest Indian gold reports in today’s featured article. And cross your fingers for the current month.
Related: Will France’s New Taxes Hit Gold?