Gold Price In India

Gold Price In India

George Gero, senior vice president at RBC Capital Markets, says that gold might see a pullback to the $1,450-$1,500 range “before recovery sets in and back to basics. Preliminary higher open interest figures now show new shorts and hedgers afraid to miss profit taking selling.” Gero also says that miners are starting to hedge gold and silver to lock in higher prices in case the selloff continues. Friday could see some short covering and some “evening out” prior to the weekend, he argues. India is the world’s largest buyer of gold, and it celebrates Akshaya Tritiya on Friday, when the consumers buy gold in order to invoke prosperity in their lives. The belief around the holiday is that Hindus consider it the most favorable wedding day of the year, saying that any work that starts on this day will come to fruition.
They report that several large investors – including George Soros and John Burbank – liquidated a considerable portion of their gold and silver holdings.  The story noted that Soros Fund Management purchased gold and silver over the past two years to protect against the Federal Reserve’s response to the risks of deflation.  However, Soros now believes that deflationary risks have dissipated significantly, making the rationale for holding positions tied to the gold price less attractive.
London precious metals prices declined as well, but slightly less severe when comparing their PM fixings on Thursday from those on Wednesday. The PM gold fix was lower by $30.00 at $1,511.00 an ounce. Silver lost $2.450 at $37.840 an ounce. In PGM metals, platinum declined $39.00 at $1,802.00 and palladium fell $31.00 at $729.00 an ounce.Gold sales were down 8% quarter on quarter, due to a slow ramp up at its fledging Penasquito mine, which has 18.6 million ounces in proven and probable gold reserves and 1.1 billion ounces of silver. Silver production was down 17% quarter on quarter at Penasquito, which hurt Goldcorp’s ability to sell silver and put the profits towards producing an ounce of gold. Operating cash flow was down 9.3% quarter on quarter and total cash costs rose $24.

Gold Price In India