Today in gold news, India’s Scrap Register reported that the country’s gold imports plummeted 42% during the 1st quarter of 2018. Imports fell to 159 tonnes during Q1, compared to 274 tonnes last year. March imports fell to 64.2 tonnes ahead of the Hindu Akshaya Tritiya festival, which happens next week.
Typically this festival creates demand for gold jewelry, which is given as gifts. Several sources indicate there was still enough gold in local stocks to satisfy the demand, resulting in lower imports. And gold prices are still relatively high in India, making gold jewelry expensive enough to reduce demand. The Scrap Register is forecasting a better Q2 for silver than for gold, which won’t make gold bugs happy. Reasoning includes decreasing trade war fears – which would drive gold higher – and increasing industrial use of silver, platinum, and palladium.
If this bears out, it could mean a slow spring and summer for gold traders, while gold languishes near current prices. You can read the Scrap Register’s forecast in today’s featured article here.