by David Kranzler
Investment Research Dynamics
These are the most gold-friendly readings in almost 2 months. India is getting ready to participate in the world gold market again. India’s gold imports drop 80.48% to $972.9 million in March documents what a heavy blow the Indian gold retailers strike struck to global gold. JBGJ guesstimates March imports at around 24 tonnes meaning some 120 tonnes of demand was lost in March. – From John Brimelow’s Gold Jottings.
The quote above from Brimelow’s Gold Jottings report is in reference to the fact that gold import price premiums in excess of the import duty India’s gold market began to appear again.
Since the big move higher through early March, gold has been surprisingly “resilient” up to this point from repeated attempts to manipulate the price lower. The most common occurrence has been attempted “flash crashes” during early Asian trading. Interestingly, gold has tended to rally after the London a.m. fix and into the NY Comex floor trading hours. Perhaps most surprising is that the bullish activity has occurred in the absence of demand from India. India’s jewelers have been on strike since March 1, which has effectively closed down India’s massive gold import machine (excerpt from the latest issue of the Mining Stock Journal).