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Gold Price Stabilizes Above $1,300 As Energy Shock Risk Remains

23-6-2014 < SGT Report 82 168 words
 

from Gold Core:


… Low Interest Rates are good for gold bullion, India mulls cutting tax on gold imports.


Recent steps taken by the ECB, with the introduction of negative interest rates, and dovish comments from Yellen have underscored a low rate accommodative monetary policy for the foreseeable future. Professional gold investors may now look at gold as being attractive from a potential risk on trade perspective and be able to finance such purchases with low financing costs.


The Hindustan Times reports today that India’s battle to reduces its Current Account Deficit has been largely successful and the government is preparing to reduce the tax on imports and remove some of the restrictions that meant that 20% of what was imported must then be exported. India’s imports of gold fell, circa 245 tonnes, in 2013 – 2014 from the year previous. If the report proves to be accurate extra demand for gold from India could drive gold prices far higher.


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