India Gold - Customer Zone - Reuters

COMMODITIES GOLD GOLD: REBOUNDS WILL RISK SHIVER BATTERED AVERSION ON JAPAN AFTER BY BANISH DEBT SHARPEST U.S. CREDIT DOWNGRADE CORRECTION LOSS DOWNGRADE SINCE DESPITE FEARS? MAY CORRECTION FEARS AUGUST 2011
India STC sees gold imports up 25% in yr to March 2012
KOVALAM, India, Aug 19 (Reuters) -
I ndia's
government-run gold importer State Trading Corporation (STC) expects a 25 percent jump in its imports to 125
tonnes in the year to March 2012 due to surging investment demand, its top official said on Friday.
"There might be a temporary dip in demand due to high prices, but again people may start buying because of investment,"
N.K. Mathur, chairman and managing director with STC, told reporters on the sidelines of a conference in the southern
state of Kerala. Local gold prices have gained more than 25 percent so far this year to peak at 27,962 rupees per 10 grams on
Friday evening.
Imports in India, the world's largest consumer of the metal, rose 34.9 percent in the first half of the year to 553 tonnes after a
surge of 72 percent in 2010 to 959 tonnes and a 38 percent rise in investment demand. STC hopes to restart its imported coins
sales division to cash in on rising investment demand, its chairman said.
Mathur, asked if it would buy coins manufactured by MMTC PAMP, which expects to start its refinery in October, said this was
possible. "We are not averse to buy from MMTC, it is business at the end of the day. If they want to market and we want to do
it, it can work," said
Mathur said it was not keen on selling silver coins as these are bulky, adding that silver imports formed "a small portion of its
business." Mathur expects gold prices to trend upwards in the short-term.
"In the short time it will rise, it will cross the $2,000 (an ounce) mark," said Mathur, adding there was an absence of alternatives
for investment. "The dollar is uncertain and even equity markets are uncertain, the only safe place is gold," he said.
Spot gold on international markets was set for its biggest one-week rise since late 2008 on Friday after a raft of soft economic
data battered stock markets, though prices eased from record highs as equity markets and the euro edged off lows in afternoon
trade. Spot gold was up 1.7 percent at $1,853.89 an ounce. It is on track for its biggest one-month rise in nearly 12 years
in August and is up 31 percent so far this year.
Gold seen peaking at $1,900/oz in next 6 months -GFMS
By Siddesh Mayenkar
MUMBAI, Aug 18 (Reuters) -
G
old could hit $1,900 an ounce in the next six months, driven by buyers seeking an investment safe from global economic
problems, but a further rise to $2,000 looks unlikely, metals consultancy GFMS said on Thursday.
"Gold will be muddling through to peak at $1,900 (an ounce)as U.S. data points have been ambiguous, the action on
the fiscal and monetary front is also ambiguous," said Paul Walker, global head of precious metals at GFMS, which
has been acquired by Thomson Reuters.
Gold extended record highs above $1,825 an ounce on Thursday after poorly received U.S. jobs data hurt assets seen as
higher risk, such as stocks, while boosting interest in nominal safe havens such as gold.
So far in August, the price has risen by more than 12 percent, putting it on track for its biggest monthly gain since November
2009. "In the time frame, we really need exceptionally dramatic news to push gold above $2,000 and this is not our base
case," said Walker. "This is highly unlikely."
Although gold remains off its inflation-adjusted peak above $2,000 struck in 1980, it is one of the top performing assets this
year, up by over 28 percent versus a 15-percent loss in U.S. blue-chip stocks or a 7.7-percent decline in the price of copper .
He said there was a high probability of India's gold imports crossing 1,000 tonnes this year -- up four percent on 2010 -- as
expectations were for prices to gain further.
The World Gold Council in a report on Thursday said Indian gold jewellery buying was up 17 percent in the second quarter and
that signs of strength in the market remained.
Gold imports by MMTC, India's second biggest importer of the metal, have tumbled to 5 tonnes so far in August as buyers preferred
a 'wait-and-watch' approach. Walker said consumers would wait for price stability before jumping in.
"People are getting accustomed to this kind of a benchmark (price) even though it is at incredibly elevated levels. Everybody
who is involved in the value chain in the Indian gold market thinks prices will go up," said Walker, ahead of a conference in the
southern state of Kerala. Silver prices could extend gains to $50 an ounce in the next months from around $40.60 an ounce
now, he added.
"It will follow gold up ... It will move towards $50, but it is going to be a hell of a lot more volatile," said Walker.
Silver prices have more than trebled since 2008 to peak at $49.51 an ounce this year. "Silver will benefit from the same factors
as that of gold from rising investment drivers. Until the global macro situation gets clearer, prices will go higher," he said.
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