Thailand Joins China In Driving Gold Bull Market
https://www.zerohedge.com/markets/thail ... ull-market
A lower interest rate will basically reduce the opportunity cost of holding gold and spark higher demand for it.
Also, the move by India to slash import duties on gold and silver could spur further demand for gold in the world’s second-biggest bullion consumer.
Gold prices are quite toppish this year. They may experience some correction along the way as traders are tempted to lock in some gains. However, gold has built quite a strong foundation at US$2,300.
The move by India to reduce its import tax on gold could resume the yellow metal’s downside if this does not generate more buying interest.
Given how important this development is, the global gold market rally remains modest. This means either the market has not fully responded to the news or other factors are at work. Other physical gold markets, including China, are sluggish.
India’s demand for gold is likely to rise while moving into the fourth quarter which is traditionally a robust seasonal period for gold demand.
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