1) Curb on gold import:
Tough measure taken by both the government and the RBI to curb gold import amid slowing
Tough measure taken by both the government and the RBI to curb gold import amid slowing
investment demand against the backdrop of a strong rally in equities, taking some sheen out of
gold.
2) Higher domestic gold inventories:
India was the top consumer of the metal in 2014 and the second biggest after China
in the first quarter of this year.
3) Concerns over Monsoon:
Nearly Two-Thirds of India's gold demand comes from rural areas where jewellery is a
traditional store of wealth for millions. Demand for gold in India is also sluggish
as concerns over a weak monsoon still remains.
4) Massive selling in China:
Some 33 tonnes were sold in the Shanghai spot market on Monday as investors sought
to shift focus to other avenues.
5) Stronger US dollar:
The current downswing in Indian gold prices is directly related to the strengthening
of the US dollar in the recent times.
6) Worry over US Fed Rate Hikes:
A rise in US interest rates will attract investors to the dollar for higher returns,
driving up its value.
7) Uncertainty in International Commodity Markets:
Heightened uncertainty in International Commodity markets amid geopolitical developments
in the aftermath of Greek debt deal and the historic nuclear agreement between Iran along
with the world powers too weighed on Bullion trade.
2) Higher domestic gold inventories:
India was the top consumer of the metal in 2014 and the second biggest after China
in the first quarter of this year.
3) Concerns over Monsoon:
Nearly Two-Thirds of India's gold demand comes from rural areas where jewellery is a
traditional store of wealth for millions. Demand for gold in India is also sluggish
as concerns over a weak monsoon still remains.
4) Massive selling in China:
Some 33 tonnes were sold in the Shanghai spot market on Monday as investors sought
to shift focus to other avenues.
5) Stronger US dollar:
The current downswing in Indian gold prices is directly related to the strengthening
of the US dollar in the recent times.
6) Worry over US Fed Rate Hikes:
A rise in US interest rates will attract investors to the dollar for higher returns,
driving up its value.
7) Uncertainty in International Commodity Markets:
Heightened uncertainty in International Commodity markets amid geopolitical developments
in the aftermath of Greek debt deal and the historic nuclear agreement between Iran along
with the world powers too weighed on Bullion trade.
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