Friday March 20, 2015 11:41 AM

According to the Trade Ministry of India, the country saw more black market gold entering its borders as the legal market faced higher tariffs and import restrictions. Based on recent government data, the number of gold seizures jumped to 3,412 cases in the first ten months of the fiscal year of 2015, up from 2,450 cases during the entire 2014 fiscal year. The value of the gold seized since the start of fiscal year was about $150 million, up from $110 million during the previous period. The Indian government only removed import restrictions - ending the 80:20 rule - in November. However, the government has maintained a 10% tariff on imported gold. The government has targeted gold in an effort to reduce the country’s massive current account deficit but it is actually lower oil prices that are helping the government reduce its overall import costs. Analysts are expecting the deficit to be reduced further this year.

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

PBOC Concerned With Levels Of Gold Stockpiles: Macquarie

Friday March 20, 2015 11:21 AM

The People’s Bank of China’s new gold import regulations, to take effect April 1, could have impacts on the overall gold market, say analysts from Macquarie. They note that the Chinese central bank will expand the number of import licenses to a wider range of participants but at the same time it also reserves the right to restrict imports and exports. The central bank said that firms have a responsibility to maintain a balance between supply and demand in the gold market, analysts say. “This might suggest concern at the size of gold imports in recent years, which have been far in excess of identified demand,” says Macquarie. The Australian-based bank said that they estimate China’s gold imports in 2014 were 1,318 tonnes, down from 1,573 tonnes import in 2013.

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

MKS: Gold Bear Market Could Be Coming To An End

Friday March 20, 2015 10:26 AM

The short-term outlook for gold appears to be to the downside but could be ending soon, says Sam Laughin, analyst at MKS SA. Although gold is benefiting after the Federal Reserve released a dovish monetary policy statement, he said prices could struggle as it is still clear the central bank is prepared to raise rates sometime in 2015. “The key question is whether the cost of holding gold against the back drop of rising U.S. interest rates, and a rising U.S. dollar, is a more efficient use of capital in the short to medium term,” he says. “That said, there is a general view that we are in the final stage of the bear market, hence the propensity for new participants to start entering the market on the long side.”

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

Greece's Uncertainty In Eurozone Should Make Gold A Safe Have

Friday March 20, 2015 9:46 AM

The question of whether Greece will remain in the eurozone remains unanswered and that is making gold an attractive safe-haven asset, say commodity analysts at Commerzbank. They note that a summit Thursday, between Greece and its creditors, yielded little new information. "The highly-indebted country is supposed to submit another list of reform proposals in order to receive further aid and thus avert insolvency," the analysts say. Commerzbank adds that the geopolitical uncertainty and region's weak currency helped push gold, priced in euros, back above the €1,100 level.

By Neils Christensen of Kitco News; nchristensen@kitco.com